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Fundamentals March 18, 2013


Nik's Diary
Indian markets opened in the red on negative opening in most of the major Asian markets because of bailout announced by Cyprus president, in which private citizens’ bank deposits would be tapped. Cyprus announced plans for a one-off levy on bank deposits in exchange for equity in the banks as part of a deal that would have international creditors provide 10bn euros (US$12.9bn) to shore up the island nation’s finances. Under the bailout, Cyprus would also sell government assets, raise corporate tax rates and impose a tax on interest earned in Cypriot banks. US stocks moved lower over the course of the day on Friday as profit taking continued and a report from Reuters and the University of Michigan showed a substantial deterioration in consumer sentiment in the month of March to 71.8 from 77.6 in February. Meanwhile, the Federal Reserve released a separate report showing that industrial production increased by more than expected in the month of February to 0.7% (Estimate – 0.5%). Meanwhile Indian markets fell on Friday, dragged down by rate-sensitive realty, banking and auto stocks, as investors adopted a cautious approach ahead of the RBI’s monetary policy meeting due tomorrow. S&P’s comments that the outlook on India's sovereign rating is constrained by slowing growth and the Cobra post's alleged expose of money laundering activities by three top private sector banks also dampened investor sentiment.

Petrol price cut by `2/litre; diesel unchanged
Petrol in Delhi and NCR will cost Rs. 2.40 less from Friday. In the steepest reduction in prices in the last nine months, the state-owned oil companies on Friday announced a cut in petrol prices by Rs. 2 per litre (excluding state taxes), resulting into an effective reduction of up to Rs. 2.50 per litre. While the new petrol rates will be effective from Friday, there will be no change in those of diesel. The reduction in rates comes in the wake of falling crude oil prices in the international market. The fall in global oil prices has also helped lower losses on diesel sales. In Delhi, petrol will now cost Rs.68.34 per litre against Rs. 70.74 currently. It was expected that oil firms will affect the monthly hike of 40-50 paise per litre in diesel rates but they reportedly deferred the decision to save the government from trouble in Parliament. When oil firms had last hiked petrol price on March 2, the Opposition parties had disrupted one full day’s proceedings. The cut in petrol price follows two rounds of hikes since February. Petrol price was hiked by Rs. 1.50 per litre on February 16 and then by Rs. 1.40 per litre on March 2. Both the hikes were excluding local VAT. Source: Hindustan Times

DoT asks Bharti to stop 3G services in seven circles and slaps a `350cr fine
The Department of Telecommunications (DoT) ordered Bharti Airtel Ltd(BRTI.NS) to stop providing 3G roaming services outside of its licensed zones, said a source with direct knowledge, sending shares of the company down 1.1 percent. The DoT also has said Bharti must pay a penalty of 3.5 billion rupees, the source said. A Bharti spokesman did not have immediate comment.  The government last year bar red wireless service providers from offering 3G roaming services outside their areas of service, but a court halted the execution of the order.  Mobile companies in India own 3G licenses only for specific areas of the country and often have agreements with other wireless providers to provide roaming services outside of those areas. Shares of Idea Cellular (IDEA.NS), which is also involved in the dispute related to 3G roaming pacts, down 1.2 percent. Source: Reuters

Infosys wins second contract from India Post
Infosys today announced that the company has been selected by India Post to implement and manage a platform that will transform its rural operations. With this new agreement, Infosys will facilitate India Post's Rural Systems Integration (RSI) program. This initiative will increase adoption of the department’s services, and enhance the reach of postal services to the country's rural population, streamlining the distribution of social benefits. As part of an earlier agreement, Infosys is also partnering with India Post to transform its financial services operations and end-user experience under the Financial Services System Integration program. The two projects are part of the 'India Post 2012' modernization program that aims to bring transparency, agility, flexibility and scalability to its business operations. The programs will empower employees to deliver services more efficiently to rural communities using the latest technology. They will also position India Post as a key agent in the Government of India’s inclusive growth policies. Infosys will develop a Service Delivery Platform (SDP) that will leverage Infosys solutions such as mConnect, TruSync and Finacle Inclusion. These will serve as a foundation for the RSI program. The new SDP will allow more than 130,000 rural post offices to offer online services. Additionally it will connect and manage more than 30,000 handheld devices used by rural postal workers for distribution of social benefits under the National Rural Employment Guarantee Act and process Electronic Money Orders. Speaking about this deal, India Post said, "We are very happy to partner with Infosys on one of the largest transformational journeys India Post has ever undertaken. We are confident that Infosys will help make the Rural Systems Integration project a success." According to Mr. CN Raghupathi, VP and Head of India Business, "India Post has been a key driver of the country's socio-economic development for over 150 years. This partnership will give us the opportunity to promote inclusive growth by helping to deliver services more efficiently to all citizens. We will use our proven technology leadership and innovation capabilities to build a platform that will transform India Post and enhance its reach significantly." Source: india education diary

Wipro bags three year contract from Emirates NBD
Wipro Infotech, the India and Middle East IT Business unit of Wipro Ltd announced that it has won a 3 year strategic Managed services contract from Emirates NBD to deliver end to end service transition and transformational services to maintain their IT systems through a managed service framework. This includes comprehensive help desk and field support services. It will make the processes more streamlined thereby allowing the bank to offer better services to their end customer. Emirates NBD is a banking group and a market leader across core business lines. It is the leading retail banking franchise in the UAEand is also a major player in the corporate banking arena. Wipro will support both physically and remotely all Emirates NBD's offices in the Middle East and many of its international offices through a remote support model. Wipro will also maintain and manage more than 8000 assets of the organization with a pool of dedicated people and managed services tool. Wipro will be using a centralized Incident Management Service desk and will provide first level application support services along with end user support services. Clustered Onsite and On call desk support services will be provided by trained professionals using tools aligned to international industry standards. As a part of this initiative 30 Emirates NBD employees will be transitioned into Wipro through a seamless process. High quality service provided by a dedicated team will help Emirates NBD increase responsiveness and hence improve business performances. This automation will also help Emirates NBD reduce cost of operations and thereby enhance overall productivity and profitability. Middle East is a focus market for Wipro and managed services is one the offerings which has been adopted by clients across segments. Wipro was recently honoured with Frost & Sullivan's Product Leadership Award in the Middle East Managed Services Market for demonstrating excellence in the managed services products segment, by offering high performance, high detection, and rapid response solutions. Mukund Seetharaman, General Manager & Business Head- Gulf, Wipro said, "This is a very strategic engagement for us in the region and we are excited at this opportunity to be a partner to ENBD. We are confident of enabling ENBD to achieve their objective of adopting global best practices for higher productivity and providing better services to their end customers." Ali Sajwani, CIO of Emirates NBD said, "Banking is a dynamic sector and technology contributes to competitive advantage. Emirates NBD is focused on a transformation programme aimed at improving IT effectiveness and efficiency. Wipro with its global expertise and capabilities in the Banking sector is a perfect partner of choice and we are confident this partnership will enhance service levels on core IT activities, improve delivery time of projects and most importantly focus on delivering initiatives aligned with the Bank's strategic direction. Source: ameinfo





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