Warehouses full with foodgrains: Pawar

New Delhi: Stock of foodgrains in government godowns was "practically double" the buffer norms, food minister Sharad Pawar today said, but maintained that responsibility of distribution to poor lay with the states, reports PTI.

"Our warehouses are full. As per buffer norms we have practically double...There are no shortcomings," Mr Pawar said in the Lok Sabha during the Question Hour.

Mr Pawar insisted that procurement, storage and allocation to states was the responsibility of the Centre but distribution through the public distribution system (PDS) was the job of the states. He blamed the states for not lifting foodgrains allocated to them.

"The government has made an additional ad hoc allocation of 25 lakh tonnes of foodgrains at below poverty line (BPL) prices for distribution to BPL families in states and union territories," Mr Pawar said.

However, since 7 September 2010 when the decision of allocation of this additional foodgrains was taken as per Supreme Court's suggestions, "hardly 6% of this was lifted by the states", he said.

Mr Pawar said the states can hire more warehouses to store excess foodgrains.

In reply to another question, MR Pawar said GPS tracking system was being used to keep an eye on vehicles carrying foodgrains in the wake of reports that grains meant for PDS were being sold in the open market.

He informed the Lok Sabha that Tamil Nadu and Kerala had taken the initiative to include items other than rice, wheat and sugar in the PDS and some other states were also working on it.


Tuesday Closing Report: Short upmove likely

The trading session, which started weak this morning, witnessed fair bit of choppiness wherein the indices moved in and out of the red amid range-bound trading. The market settled higher on buying support in post-noon trade.

The local market opened lower tracking the weakness in the global markets. Buying on select counters soon vaulted the indices into the positive zone to touch the day's high. Range-bound trading as a result of political developments in the national capital as well as the financial capital made way for the indices to trade lower once again. The flip-flop continued but buying support in fast moving consumer goods, technology and realty stocks led the markets higher at the close of the session.

The Sensex settled 80.10 points (0.38%) higher at 20,932. The index oscillated between a high-low of 20,984 and 20,763, respectively. The Nifty stood at 6,301, a gain of 28.35 points (0.45%) over its previous close. The benchmark touched an intraday high of 6,311 and a low of 6,243 during the session.

The gainers outnumbered the losers today. The Sensex ended with 20 advancing stocks and 10 in the declining list. The Nifty had 37 gainers while 13 stocks ended in the red. Among the broader indices, the BSE Mid-cap index gained 38% while the BSE Small-cap index surged 0.85%.

The top gainers on the Sensex were Hindustan Unilever (up 4.30%), HDFC Bank (up 2.42%), TCS (up 2.25%), Sterlite Industries (up 2.04%) and Bharti Airtel (up 1.74%). On the other hand, the losers were led by State Bank of India (down 4.40%), Maruti Suzuki (down 1.20%), Reliance Infrastructure (down 1.03%), ONGC (down 0.84%) and Tata Power (down 0.44%).

BSE Fast Moving Consumer Goods (up 2.52%), BSE Realty (up 1.48%) and BSE TECk (up 1.11%) were the notable gainers in the sectoral space. BSE Oil & Gas (down 0.31%) and BSE PSU (down 0.23%) were the only losers in the sectoral space.

The Reserve Bank of India (RBI) has expressed concern over the falling credit offtake, which slipped to a poor 16.6% in the last fiscal. Noting that there has been steady decline in credit growth since FY04-05 when it had touched a high of over 30%, credit offtake declined to a low of 16.6% in the fiscal ending March 2010, RBI said in its statutory Report on Trend and Progress of Banking in 2009-10.

Markets in Asia ended mixed ahead of economic data and the outcome of the Group of Twenty (G20) meeting to be held in South Korea later this week. Renewed worries about debt problems in some European nations dragged down a few Asian bourses.

The Jakarta Composite surged 1.03%, KLSE Composite gained 0.44%, Straits Times rose 0.40%, Seoul Composite advanced 0.26% and Taiwan Weighted added 0.18%. On the other hand, the Shanghai Composite declined 0.78%, Hang Seng tanked 1.02% and Nikkei 225 lost 0.39% in trade today.

The National Stock Exchange (NSE) today said it has started mobile trading for registered clients, a move that would make trading simpler for customers. The service will enable member brokers to only go through the regular compliance before facilitating their clients for mobile trading.

The bourse claimed that for the first time an Indian exchange would provide such facility free of cost to its clients, through the brokers who have enrolled for "NOW" (the software which is being used by a majority of the NSE brokers).

Wall Street closed lower overnight after splendid gains seen last week. Renewed concerns over debt issues troubling European nations and a rise in the dollar were seen as the mains reasons for the decline. Analysts opine that the Group of Twenty (G20) meeting, to be held in South Korea on Thursday and Friday, will be the next driver in moving the dollar.

The Dow slipped 37.24 points (0.33%) at 11,407. The S&P 500 shed 2.60 points (0.21%) at 1,223. The Nasdaq inched 1.07 points (0.04%) higher at 2,580.

Inflows from foreign institutional investors (FIIs) on Tuesday were almost negated by outflows by domestic institutional investors (DIIs). FIIs were net buyers of stocks worth Rs505 crore while DIIs net sold equities worth Rs471 crore yesterday.

Thermax Ltd (down 1.70%) has informed the Bombay Stock Exchange (BSE) that it has acquired Danstoker A/S, Denmark, a leading European boiler manufacturer and its German subsidiary, Omnical Kessel (Germany). The acquisition valued at 29.5 million euros was completed on 8 November 2010. This acquisition will enable the company to leverage the ongoing renewable energy movement of Europe aimed at generating 20% of its overall energy generation from renewables.

IOL Chemicals and Pharmaceuticals (up 7.77%) has received the certificate of suitability (CEP) from European health regulator for its manufacturing facilities for the non-steroidal anti-inflammatory drug 'Ibuprofen'.

The CEP has been given by the European Directorate for the Quality of Medicines and Healthcare (EDQM), the company said in a filing to the Bombay Stock Exchange (BSE).

Ramco Systems (up 4.98%) has won a prestigious order from Gulf Petrochem, an oil refining and trading company based in Sharjah's Hamriyah Free Trade Zone.

As per the terms of the agreement, it will offer its end-to-end ERP including financials, supply chain management, process manufacturing, oil accounting, logistics, HR/Payroll and business intelligence. The company's enterprise solution will address all operations of Gulf Petrochem.


SBI to launch Rs1,000 cr retail bonds in January

New Delhi: Enthused by an overwhelming response to its debut paper for retail investors, State Bank of India (SBI) plans to come out with another retail bond issue worth Rs1,000 crore in the next two months, reports PTI.

"We are planning for (retail bond issue) January. It would be in the range of Rs500-Rs1,000 crore," SBI chief financial officer SS Rajan said.

The first retail bond issue of Rs1,000 crore last month was subscribed over 17 times on the opening day itself. The bank had to curtail the subscription period as the response to the bonds was beyond anticipation.

The offering comprised issue of bonds worth Rs500 crore, with an option to raise it further up to Rs500 crore by issuing additional bonds.

The bonds were issued in two variants - Series 1 and Series 2 having maturity of 10 years and 15 years respectively - with a face value of Rs 10,000 each. The bonds offer an interest of 9.25% for 10 years and 9.5% for 15 years.

The bonds are listed on the National Stock Exchange of India (NSE). The proceeds would be utilised to augment bank's capital base in line with its growth strategy.

SBI chairman OP Bhatt had already said that the bank is likely to offer many more retail bond issues every quarter.

"Going forward, we intend to do more bond issues. We want to create a secondary market for these issues, so that exit becomes easy and price discovery takes place," Mr Bhatt had said, adding "over a period of time this will help us build a bigger corpus of long term resources."

"We believe that at present the investment opportunities for investors are very limited, which needs to be increased.

This bond issue will fulfil the need to a considerable extent," Mr Bhatt had said.




7 years ago

ICICIBANK issuing bonds at 5.75% & SBI at 9.25

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