NEWS: Twitter introduces ‘mute’ 

following.

The social network believes this will allow users more control over the content they view on their news feed and improve customer experience.
Paul Rosania, product manager at Twitter, said in a blog post: 'In the same way you can turn on device notifications so you never miss a tweet from your favourite users, you can now mute users you’d like to hear from less. Muting a user on Twitter means their tweets and retweets will no longer be visible in your home timeline, and you will no longer receive push or SMS notifications from that user.
'The muted user will still be able to fave, reply to, and retweet your Tweets; you just won’t see any of that activity in your timeline. The muted user will not know that you’ve muted them, and of course you can unmute at any time.'

raj kishore sharma
pgdm 2nd sem

Magento Intros Mobile, Payment Upgrades

 

It promises its e-commerce customers up to 18% increases in sales with the addition of PayPal's Bill Me Later service.

Magento released a new version of its Magento Enterprise Edition 1.14 that presents its e-commerce users improved responsive design for mobile sites and a payment system from sister company PayPal that promises to have a dramatic impact on conversion rates. The announcement came today at the company's Imagine 2014 user conference in Las Vegas.

The responsive design feature uses CSS3, HTML5, and jQuery to create a system that retailers can use to create sites for tablets and smartphones in about half the time they're used to, Magento claims.

The new Enterprise Edition also includes Bill Me Later from PayPal—another eBay Enterprise company—that allows merchants to automatically try alternative payment options when customers' credit cards are declined. Magento claims that the service has been proven to increase sales for retailers by as much as 18%.

“The latest Magento platform updates are a direct reflection of our commitment to help brands and retailers quickly and cost-effectively deliver a better shopping experience,” said Mark Lavelle, head of product and strategy for eBay Enterprise.

PRAVEEN SHARMA 

PGDM 2ND SEM.

Proposed Gmail Changes Might Benefit Marketers

May 12, 2014 

A new and simpler revise of the Gmail inbox surfaces, and experts like what they see: less text, more images, less distraction.

 

Hard on the heels of its tabularization of email, Google is testing a simplified design for Gmail. As was not the case with Tabs, however, email marketing experts think the change could be a good one for their clients.
Screenshots of the new design leaked in a blog published on TNW yesterday showed a cleaner, simplified inbox in which the stars normally appearing to the left of emails are replaced by color images. Pushpins on the right side of the box take the place of stars. A new menu appears on the lower right of the page that presents actions such as composing emails or setting reminders.
Simple is good, says SVP of Epsilon's Strategic Initiatives Group Quinn Jalli, who was of the opinion that nothing good could come of Gmail Tabs for email marketers. “What we're starting to see is what we should expect from Gmail,” he says. “This is more user-friendly because consumers make decisions on a visual basis.”
Jalli believes that the emergence of mobile into a dominant position in email is what's behind Google's proposed alterations. Epsilon tallies show that more than 50% of opens by users are taking place on mobile devices.
“Last year we saw a 33% increase in mobile opens and this year it's running north of 40%. We're seeing it happen across all clients and all verticals,” Jalli says. “The simplifications in this new Gmail inbox will require fewer clicks on the part of users. It's less text heavy. From a marketer's perspective, there's much less distraction, and distraction is the marketer's worst enemy.”
Brad Van Der Woerd had the same reaction. “If the rumors and designs we've seen are any indication,” says YesMail's director of marketing intelligence and deliverability, “the new layout would put a greater focus on email itself instead of everything else we see on the Gmail screen now: calendars, Google Hangouts, folders, Google+, and tools.”
As if it wasn't always crucial, the subject line becomes even more important in this rendition of Gmail, according to Van Der Woerd. “You don't want your email getting lost in the mix, so it should be clear who the email is from, why they're receiving it, and why they should open it,” he says.
Should this iteration of Gmail become reality, Jalli claims that few, if any, adjustments will need to be made by emailers—if they're already mastering the basics, that is. “This wouldn't require any change,” says Jalli, “just the need to be smart.”
                                                                                                                     NAME RAHUL SINGH 2
                                                                                                                                     PGDM 2 SEM

Rupee rallies to more than 1-month high vs dollar at 59.51

PTI  Mumbai, May 13, 2014

First Published: 09:37 IST(12/5/2014) | Last Updated: 18:22 IST(12/5/2014)

 

In a volatile session, the rupee on Monday rose to nearly ten-month high of 59.51 against US dollar but frittered away all the gains to end one paise down at 60.05 per dollar on late demand of the American currency.
At the Interbank Foreign Exchange (Forex) Market, the rupee resumed higher 59.98 per dollar as against the last weekend's level of 60.04 per dollar.
It firmed up further to 59.51 per dollar on initial selling of dollars by banks and exporters on the back of sustained foreign capital inflows into domestic equity market.

There was buoyancy in the stock markets ahead of exit polls later on Monday that are anticipated to show a stable government coming to power at the Centre when counting ends on May 16.
The rupee had strengthened to 59.45 in intra-day trade on July 29, 2013.
However, the rupee failed to maintain initial gains and closed marginally lower at 60.05 per dollar, registering a loss of one paise. It moved in a range of 59.51 per dollar and 60.12 per dollar during the day.
Banks and exporters initially preferred to reduce their dollar position in view of persistent foreign capital inflows into the equity market.
"The USD/INR pair, however, witnessed recovery with rumours that RBI was buying dollars," said Admisi Forex India in a report.
Meanwhile, the benchmark Sensex rose to all-time high of 23,572.88 before ending at 23,551.00, showing a sharp gain of 556.77 points or 2.42%.
The dollex index was down by 0.04% against the major curreinces in the international market.
However, in New York Market, the euro slid against the dollar on last Friday, dropping through the $1.38 threshold to its lowest level in a month as traders continued to react to the dovish tone of the European Central Bank.
       
                          Mithilesh Chaubey
                            PGDM 2 sem

Proposed Gmail Changes Might Benefit Marketers

May 12, 2014 

A new and simpler revise of the Gmail inbox surfaces, and experts like what they see: less text, more images, less distraction.

 

Hard on the heels of its tabularization of email, Google is testing a simplified design for Gmail. As was not the case with Tabs, however, email marketing experts think the change could be a good one for their clients.
Screenshots of the new design leaked in a blog published on TNW yesterday showed a cleaner, simplified inbox in which the stars normally appearing to the left of emails are replaced by color images. Pushpins on the right side of the box take the place of stars. A new menu appears on the lower right of the page that presents actions such as composing emails or setting reminders.
Simple is good, says SVP of Epsilon's Strategic Initiatives Group Quinn Jalli, who was of the opinion that nothing good could come of Gmail Tabs for email marketers. “What we're starting to see is what we should expect from Gmail,” he says. “This is more user-friendly because consumers make decisions on a visual basis.”
Jalli believes that the emergence of mobile into a dominant position in email is what's behind Google's proposed alterations. Epsilon tallies show that more than 50% of opens by users are taking place on mobile devices.
“Last year we saw a 33% increase in mobile opens and this year it's running north of 40%. We're seeing it happen across all clients and all verticals,” Jalli says. “The simplifications in this new Gmail inbox will require fewer clicks on the part of users. It's less text heavy. From a marketer's perspective, there's much less distraction, and distraction is the marketer's worst enemy.”
Brad Van Der Woerd had the same reaction. “If the rumors and designs we've seen are any indication,” says YesMail's director of marketing intelligence and deliverability, “the new layout would put a greater focus on email itself instead of everything else we see on the Gmail screen now: calendars, Google Hangouts, folders, Google+, and tools.”
As if it wasn't always crucial, the subject line becomes even more important in this rendition of Gmail, according to Van Der Woerd. “You don't want your email getting lost in the mix, so it should be clear who the email is from, why they're receiving it, and why they should open it,” he says.
Should this iteration of Gmail become reality, Jalli claims that few, if any, adjustments will need to be made by emailers—if they're already mastering the basics, that is. “This wouldn't require any change,” says Jalli, “just the need to be smart.”

ABHISHEK KUMAR

PGDM 1ST YR

Does Forecasting in the markets really work?

Does Forecasting in the markets really work?

 

Many a times when people ask me about how the markets would do, how a stock would perform, whether a sector will turn around, how the rupee will fare,what’s your take on the economy etc , I resort to a frank and an honest answer “Ask Bejan Daruwalla”. Forecasting the future really is the job of an astrologer. However in the investing world I have seen that analysts keep on forecasting in spite of our inability to predict the future. However still the forecasting industry is a highly paid industry and people go on forecasting and go on going wrong 90% of the time.

Most of the investing industry is obsessed with trying to guess the future. This is the result of how investors are taught to think about investing. Business schools teach us the discounted cash flow model: we are taught to forecast cash flows for a company 10 to 20 years in to the future and then discount them back to the present. I hope this was as easy as it sounds. It cannot be done as this is based on certain assumptions and these are subject to change over time. Moreover different people have different assumptions. People do it out of a habit or it has become a custom to do so to sound intelligent and smart. Certain behavioural traits also play an important role. In bullish times people are over optimistic and over confident and so would the assumptions be, which will change if there is subdued pessimism.

Normally the top down approach is followed. Forecast the economy, forecast the interest rates, forecast the sectors which will do well and within this environment forecast the stocks that will do well in that sector. Assume that someone is pretty good at this and is right on each forecast most of the time. If all the forecasts need to be correct then there is just a minimal chance of getting it right. After getting all these right the analyst still has a number of other forecasts to be made on individual companies: sales, different costs, power, raw material, wages, taxes and so on. Now how do you expect one to go right? No wonder they never hit the bulls eye.

Lets see the track record of all the forecasting by the analysts. The tech boom talked about the death of bricks and mortar and the birth of the new economy. The tech companies were forecasted to do very well. What happened? 2001 all the forecasts went for a toss. During that time the FMCG companies were the discarded lot and the analysts forecasted gloomy future for those stocks. Had you been using common sense and bought these FMCG companies because they were available at cheap valuations you would be immensely rich. Similarly 2005 to 2007 analysts forecasted bright future for the Real Estate, Infrastructure and Power Industry. None of those forecasts came true. When 2008 global crisis came, again it proved all the forecasts wrong. Surprisingly no one had forecasted the global crisis. Till last year everyone had a pessimistic outlook on our economy and the business environment and these forecasts have also gone wrong. Just recently analysts were bearish on Hindustan Lever and it surprised them with an 11% growth. Adani stocks have been zooming, had anyone forecasted? The forecasting record of the analyst’s have been dreadful and they don't have a clue about the future earnings. If you are going to read these broker reports, and hear the analysts on TV shows forecasting , please do it for entertainment rather than for investing.

                                                                                                        NAME RAHUL SINGH 2

                                                                                                               PGDM 2 SEM

 

Reliance Industries hits 1000 level after 3 years

 May 12, 2014 mon


Reliance Industries shares rose as much as 4.8 per cent to Rs. 1,048, breaking above the 1,000 level for first time since April 26, 2011.
On Friday, Reliance Industries rose nearly 4 per cent to extend its two-day gains to nearly 8.5 per cent.
Reliance Industries its partners in the KG-D6 block on Saturday served a notice to the government seeking arbitration for implementation of higher gas prices. Oil minister Veerappa Moily earlier this month ordered that increases in gas prices be backdated from April 1. (Read full story)
The gas prices were not hiked from April 1 as scheduled, after the Election Commission had on March 24 sought its deferment, saying that the matter is sub-judice. CPI leader Gurudas Dasgupta and an NGO, Common Cause, had filed public interest litigations challenging the Centre's decision to double the price of natural gas.
Meanwhile, the Bharatiya Janata Party (BJP), widely expected to win the most seats in the election, has said it would review the gas pricing formula if elected.
Reliance Industries shares have been an underperformer, weighed down by the uncertainty over gas price hike and falling output from the KG-D6 basin. However, some analysts expect that clarity over gas prices post elections would help the stock.
Brokerage firm Credit Suisse has a buy rating on Reliance Industries with target price of Rs. 1120, citing that exploration and production clarity post elections will be helpful and chemical business will lead growth in operating margin.
Samir Arora, fund manager of Helios Capital Management, however remains skeptical on oil & gas, particularly the PSU space, saying he remains unsure about the reforms in the sector post elections.
At 10.03 a.m, Reliance Industries shares were up 3.78 per cent to Rs. 1,035, outperforming Sensex which was up 1.3 per cent.

ABHISHEK KUMAR

PGDM 1ST YR
 

Online travel booking company Yatra.com mulls listing on Nasdaq

 
MUMBAI: Yatra.com, the online travel-booking company, is considering a listing in the US — possibly on the Nasdaq — sometime next year.

"The US market has good appetite right now for high growth stocks. Most of our online peers from Latin America and China have also listed in the US," cofounder and Chief Executive Dhruv Shringi told ET in a recent interview. "A Nasdaq listing gives us a much wider coverage and higher volumes." But Yatra has yet to set a definite deadline. "We are planning to do by next calendar year. If our plans work out faster, we can also do it in the current fiscal year," he said.

Unlisted Yatra.com doesn't publish financial results. Analysts say most travel-booking companies in India, like local airlines, are unprofitable. Market leader Makemytrip, the only listed travel portal, posted its fifth straight loss in the October-December quarter. But the sector offers potential for growth in a country where e-commerce is just beginning to take off. Yatra expects American investors to understand its online business model and the opportunities it offer better than those at home in India. "Given that Yatra doesn't have a longstanding track record of profitability, it is likely to find better investor appetite for a US listing because the depth of investor base familiar and comfortable with Internet business models there is far greater," said Aashish Bhinde, executive director of Avendus Capital. 
Rahul Singh -I
pgdm-iisem

Reliance Consortium serves arbitration notice to govt on gas pricing

Reliance Industries Ltd and its partners in a gas block, BP Plc and Niko Resources, said on Saturday they were taking the government to arbitration seeking implementation of higher gas prices.
The government in June last year approved a formula, linking prices of locally produced gas with global benchmarks, that could have nearly doubled gas prices from the current $4.20 per mmBtu from April 1.
The Election Commission, however, in March asked New Delhi to defer an increase until the completion of the five-week general election, results of which will be declared on May 16.   

Reliance's five-year gas sale pacts with sectors including fertiliser makers and power expired on March 31, requiring buyers to sign new contracts for supplies from its D6 block in the Krishna Godavari basin off the east coast.
Reliance and its partners issued the notice of arbitration to the government on May 9, the three companies said in a joint statement.
"The continuing delay on part of the Government of India in notifying the price in accordance with the approved formula for the Gas to be sold has left the Parties with no other option but to pursue this course of action," the statement said.
BP has a 30% stake and Canada's Niko owns 10% in the gas block.   
A spokesman for the oil ministry could not immediately comment on the development.
Gas output from the D6 block has fallen sharply since 2010. Reliance says the decline is due to the geological complexity of the block, while the government believes contractors have failed to drill the promised number of wells.
Reliance, which operates the world's biggest refining complex in Gujarat, and its partners said without any clarity on gas prices they were unable to sanction planned investments of close to $4 billion this year.
Overall, the companies said, they were planning to invest $8 billion to $10 billion in the next few years to "significantly increase production" from the D6 block.
"In addition, this will also delay the ability of the Parties to appraise and develop other significant discoveries made last year," the companies said.
The Election Commission in March gave no reason for its move to ask the government to delay the price hike, but it can order any new decision to be put on hold if it's seen influencing voters or benefitting any particular political party. 
Also, two petitions have been filed in the Supreme Court to strike down the gas price increase decision on grounds that it favoured a corporate house and was against the interests of the nation. The hearing in the case is continuing.
Demand for gas in India far outstrips consumption and domestic supply, but the government has kept prices below global market levels for producers of fertilizer and electricity, which has deterred investment in domestic exploration and production.

                                                    Mithilesh Chaubey
                                                      PGDM 2sem

Does Forecasting in the markets really work?

 

Many a times when people ask me about how the markets would do, how a stock would perform, whether a sector will turn around, how the rupee will fare,what’s your take on the economy etc , I resort to a frank and an honest answer “Ask Bejan Daruwalla”. Forecasting the future really is the job of an astrologer. However in the investing world I have seen that analysts keep on forecasting in spite of our inability to predict the future. However still the forecasting industry is a highly paid industry and people go on forecasting and go on going wrong 90% of the time.

Most of the investing industry is obsessed with trying to guess the future. This is the result of how investors are taught to think about investing. Business schools teach us the discounted cash flow model: we are taught to forecast cash flows for a company 10 to 20 years in to the future and then discount them back to the present. I hope this was as easy as it sounds. It cannot be done as this is based on certain assumptions and these are subject to change over time. Moreover different people have different assumptions. People do it out of a habit or it has become a custom to do so to sound intelligent and smart. Certain behavioural traits also play an important role. In bullish times people are over optimistic and over confident and so would the assumptions be, which will change if there is subdued pessimism.

Normally the top down approach is followed. Forecast the economy, forecast the interest rates, forecast the sectors which will do well and within this environment forecast the stocks that will do well in that sector. Assume that someone is pretty good at this and is right on each forecast most of the time. If all the forecasts need to be correct then there is just a minimal chance of getting it right. After getting all these right the analyst still has a number of other forecasts to be made on individual companies: sales, different costs, power, raw material, wages, taxes and so on. Now how do you expect one to go right? No wonder they never hit the bulls eye.

Lets see the track record of all the forecasting by the analysts. The tech boom talked about the death of bricks and mortar and the birth of the new economy. The tech companies were forecasted to do very well. What happened? 2001 all the forecasts went for a toss. During that time the FMCG companies were the discarded lot and the analysts forecasted gloomy future for those stocks. Had you been using common sense and bought these FMCG companies because they were available at cheap valuations you would be immensely rich. Similarly 2005 to 2007 analysts forecasted bright future for the Real Estate, Infrastructure and Power Industry. None of those forecasts came true. When 2008 global crisis came, again it proved all the forecasts wrong. Surprisingly no one had forecasted the global crisis. Till last year everyone had a pessimistic outlook on our economy and the business environment and these forecasts have also gone wrong. Just recently analysts were bearish on Hindustan Lever and it surprised them with an 11% growth. Adani stocks have been zooming, had anyone forecasted? The forecasting record of the analyst’s have been dreadful and they don't have a clue about the future earnings. If you are going to read these broker reports, and hear the analysts on TV shows forecasting , please do it for entertainment rather than for investing.

PRASHANT SHARMA

PGDM-IIsem

 

Rupee ends higher by 6 paise at 60.07 against dollar

PTI  Mumbai, May 09 -2014

8

 

In line with stock markets, the rupee ended higher by 6 paise at 60.07 against the dollar on fresh selling of the American currency by banks and exporters in view of strong capital inflows.

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The rupee resumed higher at 59.98 per dollar as against the last closing level of 60.13 at the Interbank Foreign Exchange (Forex) Market.
After moving in a narrow range, it settled at 60.07, a gain of 6 paise from its previous close.

Pramit Brahmbhatt, Veracity Group CEO, said: "Today, the rupee appreciated as corporates were seen selling dollars.

Exporters too were seen selling dollars at higher levels, but the dollar demand from oil importers capped the rupee gain.

Dollar index is also trading weak which helped Rupee futures to appreciate almost quarter per cent."  The BSE benchmark Sensex today ended 20 points higher at 22,344.04 after paring initial gains in volatile trade.
Meanwhile, Finance Minister P Chidambaram in New Delhi said the rupee at a level of 60 to a dollar is an "accurate" valuation of the domestic currency. He said the value of the rupee is determined by the market.
"The correct measure is the REER (real effective exchange rate). As long as the REER is around 100, that reflects more or less the correct value of a currency.
"We think that rupee at about 60 to a dollar, given the REER, is more or less an accurate reflection of the true value of the currency," he said.
In London, the euro rose against the dollar even as investors awaited European Central Bank President Mario Draghi's comments on persistently low inflation and the potential for more easing.

The benchmark six-month premium payable in October settled at 224.5-226.5 paise as against 223.5-225.5 paise previously.
Far forward contracts maturing in April, 2015 ended at 457-459 paise as against 450.5-452.5 paise previously.
The Reserve Bank of India fixed the reference rate for dollar at 59.9913 and for the euro at 83.48 83.48.
The rupee recovered against the pound to 101.91 from 102.05 previously and also bounced back against the Japanese Yen to 59.04 per 100 yen from 59.14.
It, however remained firm against the euro at 83.70 from last close of 83.75.

                                Mithilesh Chaubey
                                 PGDM 2sem

Rupee opens lower at 60.1 per dollar

The partially convertible rupee opens at 60.1 per dollar compared with its previous close of 60.06 

 

Fri, May 09 2014 

Since the beginning of this year, the rupee has gained 2.85% against the dollar, while foreign institutional investors have bought $5.47 billion from local equity markets. Photo: Pradeep Gaur/Mint 

Mumbai: The Indian rupee on Friday opened marginally lower tracking mixed trend in Asian currencies market. The local currency opened at 60.1 per dollar against its Thursday’s close of 60.06.

Most of the Asian currencies were trading mixed. The Philippines peso was trading up 0.93%, Malaysian ringgit was up 0.41%, Thai baht was down 0.22%, and the Japanese yen was down 0.06%.

Since the beginning of this year, the rupee has gained 2.85% against the dollar, while foreign institutional investors have bought $5.47 billion from local equity markets.

The yield on India’s 10-year benchmark bond was trading at 8.75%, compared with its Thursday’s close of 8.75%. Bond yields and prices move in opposite directions.

At 9.08am, the rupee was trading at 60.09 per dollar, down 0.04% from its previous close, while India’s equity benchmark Sensex index was trading at 22,368.06 points on BSE, up 0.06%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.468, up 0.13% from the previous close of 79.361.

 

HIMANSHU CHAUDHARY

 

PGDM 1ST YR

 

 

Domestic car sales down 10.15% in April

NEW DELHI: Domestic passenger car sales declined by 10.15 per cent to 135,433 units in April as compared to 150,737 units in the year-ago month. 

Motorcycle sales last month grew by 8.06 per cent to 911,908 units from 843,909 units in the year-ago period, according to data released by the Society of Indian Automobile Manufacturers (SIAM). 

Total two-wheeler sales in April grew by 11.67 per cent to 13,04,447 units as against 11,68,100 units in the same month last year. 

Sales of commercial vehicles were down by 24 per cent to 43,080 units in April, SIAM said. 

Motorcycle sales last month climbed 16.24 per cent to 9,06,665 units from 7,80,022 units a year earlier, according to data released by the Society of Indian Automobile Manufacturers (SIAM). 

Total two-wheeler sales in March rose 21.16 per cent to 13,34,214 units as against 11,01,203 units in the same month last year. 

Sales of commercial vehicles were down 24.55 per cent to 64,101 units in March, SIAM said. 

Vehicle sales across categories registered an increase of 12..83 per cent to 16,77,445 units from 14,86,664 units in March 2013, it added. 

For the fiscal ended March 31, 2014, domestic car sales fell 4.65 per cent to 17,86,899 units as compared to 18,74,055 units in the previous year. Vehicle sales across categories registered an increase of 6.96 per cent to 15,69,670 units from 14,67,472 units in April 2013, it added.

PRAVEEN SHARMA

PGDM 2ND 

.

HTC targets US market share as new flagship sales outstrip predecessor

Fri, May 09 2014

HTC expects revenue to land in a range of T$65 billion to T$70 billion in April-June

HTC’s future is not as dependent on its flagship model in advanced markets as it once was, as sales of lower-priced models in emerging economies are growing at an increasing rate. Photo: Reuters 

Taipei: Taiwan’s HTC Corp said it is selling new flagship smartphone One M8 quicker than its predecessor, and that the strong showing will help it claw back market share in developed markets such as the US.

HTC’s market share has steadily declined since the company briefly topped the smartphone market in 2011, exacerbated by sales of previous flagship One M7 failing to match the phone’s critical acclaim.

HTC is keen to avoid a similar outcome this year by accompanying the M8 upgrade with “more effective and efficient marketing,” chief financial officer Chialin Chang said at HTC’s quarterly investor conference on Tuesday.

“In 2014, we intend to sell more units of the M8 than the M7, which was already the best-selling model in HTC history.”

Even so, HTC expects revenue to land in a range of T$65 billion ($2.16 billion) to T$70 billion in April-June, slightly below the T$71 billion of the same period a year earlier.

That would nevertheless be about double the T$33 billion booked in January-March, when HTC reported a net loss that was wider than analysts estimated at T$1.88 billion.

The first quarter finished in March with HTC ending 28 months of on-year sales declines. HTC logged another sales rise in April indicating strong shipments of the M8, which was released in late March around a year after the M7.

HTC shipped 3.4 million M7 handsets in the second quarter of last year compared with expectations of nearly twice that amount, estimated Yuanta Securities analyst Dennis Chan.

Sales of the M8 have exceeded M7 sales in the same time frame, Chang said on Tuesday, without providing figures. Chang also said HTC is likely to break even or book a profit for the first half of the year.

Shares of HTC closed up 3.6% ahead of the briefing, reaching a nine-month high on expectations of a strong revenue forecast. The benchmark Taiwan SE Weighted Index ended up 0.5%.

HTC’s future is not as dependent on its flagship model in advanced markets as it once was, as sales of lower-priced models in emerging economies are growing at an increasing rate.

 

ABHISHEK KUMAR

 

PGDM 1ST YR

 

Hyundai’s new models help drive up April sales by 8%

 

Hyundai’s exports, however, dropped 39% to 14,974 units. Photo: HT 

Mumbai: Hyundai Motor India Ltd, the country’s second largest car manufacturer and largest passenger car exporter, sold 35,248 units in April, up 8.8% compared with a year ago, the company said in a statement on Thursday.

The sales were propped up by new models such as the Xcent, a compact sedan, Grand i10 and Santa Fe, the premium SUV offering. The company’s exports, however, dropped 39% to 14,974 units.

“The sales are in line with this year’s objective of growth in volume and market share. Growth is led by sedan and utility vehicles across geographies, with new products,” said Rakesh Srivastava, senior vice presidents (sales and marketing) in a statement.

The company hopes to maintain the positive momentum this year by strengthening its product portfolio and improving channel efficiencies, he added.

                                                                                                NAME RAHUL SINGH 2

                                                                                                       PGDM 2 SEM

 

AirAsia gets India operating licence

 Mumbai: AirAsia (India) Pvt. Ltd on Wednesday received the air operating permit from the regulator Directorate General of Civil Aviation (DGCA).

“We are thrilled to have got our licence,” said AirAsia Group Bhd chief executive officer Tony Fernandes in a text message.

“It is a monumental thing for India. I have no plans to disappoint the public or any other stakeholders,” AirAsia India’s chief executive officer Mittu Chandilya said, adding the airline is better positioned to fly now than a few months ago.

Neither Chandilya nor Fernandes gave any details about when the service would be launched in India. 

 

Prabhat Kumar, Director General of Civil Aviation, declined to comment.

The permit was the last regulatory approval needed by AirAsia India, a venture of Malaysia’s AirAsia Bhd, Tata Sons Ltd andArun Bhatia of Telestra Tradeplace Pvt. Ltd, to operate in India. But experts warned the airline may continue to face legal challenges.

In February, DGCA dismissed a demand by private airlines in India, including IndiGo, Jet Airways (India) Ltd, SpiceJet Ltd andGoAir, objecting to the grant of a licence to AirAsia India. The domestic airlines argued that a September 2012 policy change allowing foreign airlines to invest in local airlines was applicable only to existing airlines and not new ones.​

The approval to AirAsia India will be subject to any future directions from the Delhi high court, a DGCA official said, declining to be named.

The Supreme Court had said in February that the award of a licence to AirAsia will be subject to judges’ decision in a case being heard by the Delhi high court. The high court is hearing a plea by Bharatiya Janata Party (BJP) leader Subramanian Swamy seeking a stay on further approvals to the proposed airline venture.

Swamy has also moved the Election Commission to stop the DGCA from granting licences to the venture till a new government takes over at the Centre. He claimed the aviation ministry is unaware of the principle laid down by the Election Commission while enforcing its model code of conduct. The model code of conduct, which comes into force with the declaration of poll dates, bars the government from making any policy announcements that can influence voters. 

 

On 1 May, the Delhi high court decided to set up a special bench to hear Swamy’s pleas seeking quashing of any approvals by the government to operationalize AirAsia India. The bench will hear the case on 11 July. In addition to Swamy’s plea, lobby group Federation of Indian Airlines has filed two other petitions challenging the approvals granted to the Tata-AirAsia venture and a proposed Tata Sons-Singapore Airlines.

It has taken AirAsia, which announced the venture in February 2013, 15 months to get regulatory clearances, said Kapil Kaul, chief executive officer (South Asia) at consultancy firm Centre for Asia Pacific Aviation, or Capa.

“AirAsia (India) may not be fully prepared for an early launch and shouldn’t rush for an early launch. More recruitment has to be done, start-up training, logistics at each operating station to be set, slots have to be approved, schedules to be marketed within their distribution system and possibly other requirements to be addressed,” Kaul said.

 

He said AirAsia should start operations in September or October as launching in the second quarter will burn cash and impact on the company’s start-up capital. He also cautioned that the airline may continue to face legal challenges in India.

Tata Sons has also formed a 51:49 joint venture with Singapore Airlines to launch an airline and is waiting for AOP (air operating permit) for its commercial operations.

In September 2012, the government allowed overseas airlines to invest up to 49% in local airlines. Previously, foreign investors, but not airlines, had been allowed to hold up to a 49% stake in local airlines.

AirAsia India has crossed a major procedural milestone even as it faces legal challenges ahead, said Peeyush Naidu, director at consulting firm Deloitte Touche Tohmatsu. AirAsia is expected to create some strong new regional routes with low fares in its initial phase, Naidu said.

rahul singh 1
pgdm 1 year 2 sem