India to block U.S. trade probes, ready for fight at WTO

India has decided to block investigations by the United States into its trade policies and patent laws and prepare for a battle at the World Trade Organization (WTO), a move that could escalate already-strained tension between the two countries.

New Delhi is furious about a threat of trade sanctions made by the U.S. Trade Representative's (USTR) office over its protection of intellectual property rights (IPR), preference for domestic producers and non-trade barriers.

Ahead of a general election, Prime Minister Manmohan Singh's government does not want to be seen as bowing to U.S. pressure, amid lingering tension over the recent arrest and strip search of a female diplomat in New York suspected of visa fraud.

On Wednesday, the National Association of Manufacturers (NAM) - which represents about 50 U.S. business groups - asked the USTR to designate India a Priority Foreign Country in its 2014 report.

"This designation appropriately would rank India among the very worst violators of intellectual property rights and establish a process leading to concrete solutions," NAM said in a letter to U.S. Trade Representative Michael Froman.

The USTR is holding public hearings for its annual report due in April. The report will provide details on nations denying protection of IP rights or fair market access to U.S. firms.

India is widely perceived in Washington as a serial trade offender, with U.S. firms unhappy about imports of everything from shrimp to steel pipes they say threaten jobs, as well as a lack of fair access to the Indian market for its goods.

WTO CASES

This month, Washington said it was filing its second case at the WTO over domestic content requirements in India's solar programme, which aims to ease energy shortages in Asia's third-largest economy.

There are 14 past or current WTO cases between India and the United States, whose bilateral trade in goods measured $63.7 billion last year, not including the latest case.

India has since hardened its stance, instructing officials not to entertain any request from the United States International Trade Commission (USITC) - a quasi-judicial federal agency - to examine its trade practices.

India's trade ministry has also "advised" U.S Deputy Trade Representative Wendy Cutler to put off a visit to India that had been scheduled for late March due to the parliamentary election due in April or May, a senior official told Reuters.

The official said India had asked for alternative dates for the visit, possibly after the elections, adding that the decision was not linked with the trade tension.

A spokeswoman for the USTR said officials from both governments continued to engage in constructive discussions on trade and investment issues and to seek out opportunities for further economic collaboration.

WORST OFFENDERS

The USTR listed in a February 12 report markets in Delhi, Mumbai and Hyderabad as being among the worst offenders globally for the sale of pirated software and counterfeit goods.

A visit by the USITC delegation to meet officials from the Indian commerce, industry, health, telecom and finance ministries has also been put on hold.

A USITC spokeswoman confirmed the delay, saying they were looking for "other windows" for a visit, but declined to comment on the reasons for the delay.

Newly appointed Trade Secretary Rajeev Kher, who pushed India's stand on food security issues at a WTO meeting in Bali, as chief WTO negotiator, has told his officials to tackle bilateral trade disputes preferably through multi-lateral forums.

India has also urged President Barack Obama's administration not to fall prey to special interest groups and consider trade issues in the context of the wider economic and strategic relationship between the two countries.

Officials say any move towards putting India on a priority foreign countries list would hurt bilateral relations.

"There are clear stresses in the India-US trade, economic relations," said another government official who, like others who spoke to Reuters, declined to be identified due to the sensitivity of the matter.

"If it is a strategic relationship, they should be looking at the larger picture."

Source: Latest News in Hindi

Form Reuters News

Rupee down 8 paise against dollar in early trade

Breaking a three-day winning run, the rupee today lost 8 paise to 62.02 against the US dollar in early trade on the Interbank Foreign Exchange market due to appreciation of the US currency overseas.

Forex dealers said apart from month-end demand for the American currency from importers, dollar gaining against other currencies overseas also put pressure on the local unit, but a higher opening in the domestic equity market capped the fall.

The domestic currency had gained 13 paise to close at one-week high of 61.97 against the dollar yesterday amid positive stock markets and signs of continued capital inflows.

Meanwhile, the benchmark BSE Sensex was up 41.18 points, or 0.20 per cent, to 20,893.65 in early trade today.

Source: News in Hindi

From ET News

Sensex, Nifty strike over 4-1/2 week high

 A bout of volatility was witnessed in morning trade as the key benchmark indices trimmed gains after hitting fresh intraday high. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both hit their highest level in over 4-1/2 weeks. The S&P BSE Sensex was up 59.52 points or 0.29%, off 27.28 points from the day's high and up 51.97 points from the day's low. The market breadth, indicating the overall health of the market, was positive.

Index heavyweight and cigarette major ITC edged higher. Reliance Industries was marginally higher in volatile trade after the company in a press release on Tuesday, 25 February 2014 said it strongly denies all allegations made by Aam Admi Party (AAP) against RIL and Mr. Mukesh Ambani in their public meeting recently. State Bank of India (SBI) extended initial gain after the state-run bank said after market hours on Tuesday, 25 February 2014 that a meeting of the board of directors of the bank will be held on 3 March 2014 to consider declaration of interim dividend for the financial year ending 31 March 2014. Capital goods stocks edged higher on renewed buying. Bharat Heavy Electricals (Bhel) rose on reports that the country's largest insurer, Life Insurance Corporation (LIC), may reportedly pick up 5% stake in state-run power equipment maker in a block deal. Sanofi India rose after declaring strong Q4 result after market hours on Tuesday, 25 February 2014.

Key benchmark indices trimmed initial gains triggered by mostly higher Asian stocks. A bout of volatility was witnessed in morning trade as the key benchmark indices trimmed gains after hitting fresh intraday high. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both hit their highest level in over 4-1/2 weeks.

Volatility may remain high today, 26 February 2014, as traders roll over positions in the futures and options (F&O) segment from the near-month February 2014 series to March 2014 series. The near month February 2014 F&O contracts expire today, 26 February 2014.

Foreign institutional investors (FIIs) bought shares worth a net Rs 423.41 crore on Tuesday, 25 February 2014, as per provisional data from the stock exchanges.

At 10:15 IST, the S&P BSE Sensex was up 59.52 points or 0.29% to 20,911.99. The index gained 86.80 points at the day's high of 20,939.27 in morning trade, its highest level since 24 January 2014. The index rose 7.55 points at the day's low of 20,860.02 in early trade.

The CNX Nifty was up 13.65 points or 0.22% to 6,213.70. The index hit a high of 6,222.90 in intraday trade, its highest level since 24 January 2014. The index hit a low of 6,202.10 in intraday trade.

The market breadth, indicating the overall health of the market, was positive. On BSE, 966 shares gained and 691 shares fell. A total of 77 shares were unchanged.

The BSE Mid-Cap index rose 7.70 points or 0.12% to 6,470.02, underperforming the Sensex. The BSE Small-Cap index rose 25.14 points or 0.39% to 6,446.84, outperforming the Sensex.

The total turnover on BSE amounted to Rs 402 crore by 10:20 IST compared to Rs 122 crore by 09:25 IST.

Among the 30-share Sensex pack, 21 stocks gained and rest of them declined.

Sesa Sterlite (down 2.09%), Coal India (down 1.5%) and ONGC (down 0.96%) edged lower from the Sensex pack.

Index heavyweight and cigarette major ITC rose 0.96% to Rs 325. The stock hit high of Rs 325.30 and low of Rs 322.40 so far during the day.

Reliance Industries (RIL) rose 0.06% to Rs 811 in volatile trade. The stock hit high of Rs 813.90 and low of Rs 809.50 so far during the day. RIL in a press release on Tuesday, 25 February 2014 said it strongly denies all allegations made by Aam Admi Party (AAP) against RIL and Mr. Mukesh Ambani in their public meeting recently.

As stated earlier it is being reiterated that neither RIL nor Mr. Mukesh Ambani have or had any illegitimate accounts anywhere in the world. RIL has business interests in several countries with turnover of thousands of crores in Rupees. As a part of their normal business, these international subsidiaries of RIL deal with several global banks. These accounts are fully compliant with all regulations and are disclosed in their appropriate jurisdictions and in India. The continued tirade of baseless allegations being made by AAP against us appears to be instigated by vested interests, RIL said.

State Bank of India (SBI) rose 1.08%, with the stock extending initial gain. The state-run bank said after market hours on Tuesday, 25 February 2014 that a meeting of the board of directors of the bank will be held on 3 March 2014, inter alia, to consider, and if thought fit, declare interim dividend for the financial year ending 31 March 2014.

Capital goods stocks edged higher on renewed buying. ABB India (up 7.23%), BEML (up 0.54%), Crompton Greaves (up 0.19%), L&T (up 0.43%), Siemens (up 4.29%) and Thermax (up 1.23%) gained.

Bharat Heavy Electricals (Bhel) rose 1.06%. The country's largest insurer, Life Insurance Corporation (LIC), may reportedly pick up 5% stake in state-run power equipment maker Bhel in a block deal. According to a media report, the proposal initiated by the heavy industries & public enterprises ministry is now being processed by the disinvestment and financial services department of the finance ministry.

Sanofi India rose 1.73% after net profit surged 106.92% to Rs 92.70 crore on 15.49% increase in total income from operations to Rs 488.30 crore in Q4 December 2013 over Q4 December 2012. The company announced the results after market hours on Tuesday, 25 February 2014.

Sanofi India's net profit jumped 50.08% to Rs 265.20 crore on 14.99% increase in total income from operations to Rs 1808.90 crore in the year ended December 2013 over the year ended December 2012.

The stock market remains closed tomorrow, 27 February 2014, on account of Mahashivratri.

The Securities and Exchange Board of India (Sebi) on Tuesday, 25 February 2014 proposed in a discussion paper that appointment of an agency to monitor the utilization of funds raised through an initial public offering (IPO) should be made mandatory. Currently, such an appointment is compulsory only if the public issue size exceeds Rs 500 crore. Sebi said the move is aimed at strengthening the monitoring of utilization of all the equity capital raised by selling shares to the public.

In its latest discussion paper, Sebi proposed that the appointed agency will be required to submit its report to the issuer every quarter till the full utilization of the public issue proceeds, as compared to the requirement of submission of such reports on a half-yearly basis at present. Also, such reports will be required to be put out on the stock exchanges' website to keep investors informed.

To curb misuse of money raised through a public issue, Sebi proposed to make it mandatory for the monitoring agency to assign grades to the issuer.

In order to ensure that the monitoring process is carried out effectively, Sebi proposed that a committee of board of directors of the company has to be constituted to oversee the monitoring of utilization of issue proceeds before opening of the public issue. This sub-committee will facilitate monitoring of issue proceeds by monitoring agency. A majority of the members of such a sub-committee will have to be independent directors, Sebi suggested.

Sebi has sought public comments on the proposals till 25 March 2014.

The Reserve Bank of India next undertakes monetary policy review on 1 April 2014. Citing price pressures, the Reserve Bank of India raised its key lending rates by 25 basis points after Third Quarter Review of Monetary Policy for 2013-14 on 28 January 2014.

In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 61.97, compared with its close of 61.9350/9450 on Tuesday, 25 February 2014.

Asian stocks swung between gains and losses as energy shares advanced, countering declines by raw-material producers. Key benchmark indices in China, Hong Kong, South Korea and Taiwan rose by 0.14% to 0.47%. Key benchmark indices in Singapore, Japan and Indonesia fell by 0.34% to 0.58%.

Taiwan's jobless rate nudged lower last month, as the labor force participation rate decreased, the government said today, 26 February 2014.

The island's nominal jobless rate came in at 4.02% in January, down from December's 4.08%, the Directorate-General of Budget, Accounting and Statistics said.

On a seasonally adjusted basis, the jobless rate was 4.07% in January, down from 4.12% in December, the government said.

US stocks finished a choppy trading session lower on Tuesday, 25 February 2014 as gloomy reports on home prices and consumer confidence dampened the mood.

US home prices ticked down 0.1% in December, declining for a second month, with 11 of 20 tracked cities posting drops, according to S&P/Case-Shiller's composite index. After seasonal adjustments, home prices in December rose 0.8%, down a bit from 0.9% in November.

The consumer confidence index fell to 78.1 in February from 79.4 in January, the Conference Board said Tuesday, 25 February 2014.

The Federal Open Market Committee (FOMC) next undertakes monetary policy review on 18-19 March 2014. After a monetary policy review, the FOMC on 29 January 2014 announced it will reduce monthly bond purchases by another $10 billion to $65 billion.

Source: Latest News in Hindi

From BS News

Ranbaxy Laboratories locked out of its biggest market with API shutdown

Ranbaxy Laboratories on Tuesday suspended all shipments of active pharmaceutical ingredients (APIs) produced at its Toansa and Dewas plants in order to enable it to review processes and controls.

The two factories are currently banned from shipping products to the US following quality concerns. Last month, the US Food and Drug Administration (FDA) prohibited Ranbaxy from shipping to its biggest market any APIs made at its facility in Toansa in Punjab. The sanction was the latest in a series of regulatory rebukes for India’s largest drugmaker by revenue since Japan’s Daiichi Sankyo took control of the company in 2008.

A spokesperson for Ranbaxy said supplies to other markets such as Europe and India would not be significantly impacted since only 15% of the company’s API requirement was sourced from its own plants, with 85% of raw materials bought from other sites approved by foreign regulators including the US FDA and the UK’s Medicines and Healthcare Products Regulatory Authority. APIs are raw materials used to make finished drugs.

The Ranbaxy scrip fell as much as 2.7% in early trade on the news but closed 1% higher at Rs 367.05 on the BSE.

“Since the company has voluntarily withdrawn its production, we believe it would have made alternative arrangements for the production of the withdrawn APIs,” Sarabjit Kour Nangra, vice-president, research (pharma), Angel Broking, said.

The Toansa ban, which followed similar action on two plants in 2008 — Paonta Sahib (Himachal Pradesh) and Dewas (Madhya Pradesh) — and Mohali (Punjab) in September 2013, means Ranbaxy can no longer export to the US from India.

Ranbaxy said in a statement on Tuesday THAT it was “currently examining processes and controls” at all its API manufacturing units. “This voluntary decision was taken as a precautionary measure and out of abundant caution to better allow the company to assess and review the processes and controls,” it said in the statement.

Ranbaxy also said it has set up a committee to provide oversight on manufacturing and quality operations, systems, organisation and integrity.

Daiichi Sankyo said that it is committed to continuing to offer full support for Ranbaxy to improve quality standards. “The temporarily.

Source: Hindi News

From Financialexpress News