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Profit Briefing: December IIP at 1.8%; Drastic income tax recommendations

If you missed our coverage, here is a quick summary.

Irate passengers at a closed Kingfisher Airlines counter, Mumbai airport - Source: AP
Irate passengers at a closed Kingfisher Airlines counter, Mumbai airport - Source: AP

If you missed our coverage, here is a quick summary.

MARKETS: Sensex falls 82 points, Nifty below 5,400

Indian markets closed Friday lower by 82 points or 0.46% to 17,748.69 while the broader Nifty index ended 30.75 points lower at 5,381.60. However, the correction is being seen as a welcome relief. (Read More)

ECONOMY: December IIP at 1.8% against 5.9% in November 2011

India’s industrial output, measured by the index of industrial output, or IIP, registered a growth of 1.8 per cent for December 2011, slower than the expected 2.7 per cent, and lower than the 5.7 per cent expansion in November 2011.

Video: Impact of IIP on rupee, bond yields

No tax on annual income upto Rs 5 lakh: Standing committee

In what could be dramatic cuts in personal tax rates, the Parliamentary Standing Committee on Finance headed by BJP leader Yashwant Sinha has recommended minimum tax exemption limit to be set at Rs 5 lakh per annum. Currently, male tax payers pay no tax up to Rs 1.8 lakh in annual income. (Read More)

TELECOM: RCom Q3 net down 26.2% to Rs 186 cr


Reliance Communications, India's second largest wireless company by subscribers, reported a 26.2 per cent drop in sequential net profit of Rs 186 crore over revenue of Rs 5,052 crore for the quarter ended December 2011. (Read More)

Analjit Singh named Vodafone India chairman

Vodafone on Friday said it is appointing Analjit Singh as the non-executive chairman of its India operations, pending board approval from Vodafone India. Singh is the founder and chairman of Max India Ltd and its subsidiaries, which are primarily in the financial services sector. He was also the founder and chairman of Max Telecom, which later became Vodafone India. (Read more)

Govt should make 2G auction transparent, says Uninor MD

Meanwhile, Sigve Brekke, managing director of Indian telecom firm Uninor, called upon the government to make the 2G spectrum auction process transparent and for available spectrum to be put on the block. (Read More)

OIL & GAS: BPCL Q3 net up on higher subsidy; IEA trims demand forecast

Public sector oil retailer BPCL has reported a 60% year-on-year jump in net sales in the quarter ended December2011. Net profit in the third quarter jumped 16-times to Rs 3,139.60 crore against Rs 187.38 crore in the corresponding period last fiscal on account of higher government subsidy. The company has received Rs 6,993.70 crore subsidy in this quarter. (Read more)

The International Energy Agency trimmed its forecast for oil demand growth this year because of gloomy economic prospects; but said that markets were taking tougher international sanctions on Iran in their stride. This move comes after the International Monetary Fund slashed its estimate for global economic growth in 2012 to 3.3 per cent from 4.0 per cent. (Read More)

Meanwhile, oil prices fell to near $99 a barrel Friday in Asia as encouraging news about the U.S. economy was tempered by European demands for Greece to make further spending cuts before getting a new bailout. (Read More)

IT: Google gets forex violation notice

The Enforcement Directorate has issued a foreign exchange violation notice to internet search leader Google for alleged irregularities in transfer of funds to its foreign entities. The ED, according to sources, is investigating if the firm violated RBI norms in regard to transfer of funds abroad, including in Ireland, and receiving similar investments from foreign shores. (Read More)

Apple valued more than Microsoft+Google

Apple’s stock market value was higher than Microsoft and Google put together. According to US stock market data, Apple’s market capitalization was $ 459.82 bn. Microsoft was $ 258.18 bn and Google stood at $ 198.81 bn. (Read Why)

BANKING: Lehman Brothers sues Citigroup for $2.5 billion

Lehman Brothers Holdings Inc. and its creditors are suing several units of Citigroup Inc. to recover $2.5 billion the failed investment bank transferred to a backup account at Citi months before seeking bankruptcy court protection.  Lehman claimed that Citibank is wrongfully withholding the money as a potential source of funds in a dispute over derivative contracts. (Read More)

Strong capital flows to prevent rupee from weakening, says HSBC

Hitendra Dave, managing director of Head of Global Markets, India at HSBC spoke about the impact of IIP and other numbers like inflation create on the India’s macro-economic situation, rupee valuations and the bond market. (Read the interview)

AUTO: Tata Motors hikes prices by up to Rs 12,000; leaves Nano, Aria

Tata Motors on Friday said it has increased prices of its passenger vehicles, except small car Nano and premium crossover Aria, by up to Rs 12,000 to mitigate the impact of high input costs. The company said the price hike has been effective from Thursday across the country. (Read More)

INFRASTRUCTURE: NBCC files draft prospectus for maiden IPO; Bangalore Metro to float tax-free bonds to raise money

State-run National Building Construction Corporation Friday said it will dilute 10 per cent stake through an initial public offer, for which it has filed the Draft Red Herring Prospectus with SEBI. (Read More)

In a first for Metro transport sector in the country, the Bangalore Metro Rail corporation Limited (BMRCL) is set to issue tax-free 'Metro' bonds to raise money for its expansion. N Sivasailam, the Managing Director of the BMRCL, said "for Phase I anything upto Rs 2000 crores would be sufficient." (Read More)

AVIATION: IATA Clearing House reinstates Kingfisher Airlines

Amidst much turbulence, a relief for Kingfisher Airlines as IATA Clearing House (ICH) has reinstated Kingfisher Airlines after it was suspended from ICH earlier this month because of non-payment of dues. (Read more)

REAL ESTATE: Godrej Properties launches first real estate venture in Chennai

Godrej Properties (GPL), the real estate arm of Godrej Group, launched its first venture in Chennai, the Rs 450 crore 'Godrej Palm Grove'. Pirojsha Godrej, Executive Director, GPL, said that 1,556 modern apartments would come up over 12.5 acres along NH-4 Bengaluru Highway ranging from 1,188 sq ft to 1,489 sq ft. (Read More)

EARNINGS: IDFC, Tata Chemicals, Fortis Healthcare, JSW Steel

Infrastructure Development Finance Company (IDFC) has reported a 25.6% year-on-year jump in consolidated revenue for the October-December quarter. (Read More)

Tata Chemicals, the fertilizer and chemicals arm of Tata Group, announced a 36 per cent rise in net profit at Rs 223.78 crore for the quarter ended December 31, following growth across all segments in the domestic as well as the international markets. (Read More)

Fortis Healthcare India said its consolidated net profit dipped by 15.18 per cent to Rs 29.26 crore for the third quarter ended December 31, 2012 over the same period last fiscal due to investments in new verticals and losses suffered by diagnostic arm SRL. (Read More)

JSW Steel consolidated net sales stood at Rs 8,406.66 crore in Q3, up from Rs 5,964.18 crore in the same quarter last year. Its Profit After Tax (PAT), however, declined to Rs 92.04 crore from Rs 282.74 crore last year.