INDIA BUSINESS UPDATE - Essar Exits Vodafone-Essar JV For $5 Bn; Govt Liberalises FDI Policy To Boost Inflows; Sensex Gains 155 Pts

Thursday, Mar 31, 2011 SPECIAL LEAD Click here for India Business Update Mobile Version GOVT EASES FDI NORMS, FOREIGN JV RULES Relaxing the FDI rules, the government today decided to permit the issuance of equity to overseas firms against imported capital goods and machinery. It also announced allowing 100% Foreign Direct Investment in the agriculture sector including seeds, plantation, horticulture and cultivation of vegetables. Also, foreign investors can bring in further funds without obtaining prior approval from their existing domestic joint venture partners. read more LEAD STORIES ESSAR EXITS VODAFONE-ESSAR JV FOR $5 BN Putting an end to the corporate battle, UK-based Vodafone announced it wouldacquire its Indian partner Essar's 33% stake for $5 billion. read more SENSEX GAINS FOR EIGHTH STRAIGHT DAY, UP 155 PTS Sensex closed at 19,445.22 points on steady FII inflows and easing inflation. Nifty ended at 5,833.75, up 46.10 points. read more TOP STORIES • Census 2011: Population pegged at 1.21 bn people • Silver prices surge to record high of Rs 56,900/kg • Food inflation back to single digit at 9.5% • Fiscal deficit improves; at 68.6% of budget estimates • ICICI a foreign co, its invst subject to FDI norms: Govt • Garment exports up 24% in Feb YoY; highest this fiscal • Auto component cos want anti-poaching agreements • Telecom investments hit FIPB roadblock • SEBI sets up committee on corporate bond market • Run updated websites from Apr 1: SEBI to listed cos • OP Bhatt hangs up boots as SBI chairman • Smartlink to sell Digilink biz to Schneider for Rs 503 cr • MCX files for IPO with SEBI, to sell 6.43 mn shares • 2/3rd of stocks listed in FY11 below issue price • Cheque payments to get costlier from tomorrow • India Inc created 2,500 U.S. jobs since 2005: CII • Govt approves giving Rs 45 cr tax exemption to WC • Libya foreign minister resigns, blow to regime • Buffett 'heir' David Sokol quits, stock tanks 3% • Quake drives Japan manufacturing PMI to 2-yr low more stories TOP VIDEOS It Is A Market Where One Has To Be A Bit More Stock Specific Rather Than Broad Market Specific: Nilesh Shah, President - Corporate Banking, Axis Bank From The Street To The Sky: Vir Sanghvi In Conversation With Naresh Goyal, CEO, Jet Airways If I Am Competing For Global Dominance, I Must Run Deep In One Area - Hence, Focus On Motorcycles: Rajiv Bajaj, MD, Bajaj Auto U.S. Is Being Pumped Primarily By Quantitative Easing, While China Is Slowing Down By Itself: Jonathan Barratt, MD, Commodity Broking Services AT A GLANCE BSE 19445.22 +155.04 NSE 5833.75 +46.1 TURNOVER Rs. 276,357 cr BSE CASH Rs. 3,131 cr NSE CASH Rs. 19,219 cr NSE F&O Rs. 254,006 cr BULLION GOLD 20788 +73 SILVER 56068 +305 CRUDE NYMEX 102.25 -0.08 BRENT 117.26 +2.13 FOREX $ / Re 44.52 -0.09 £ / Re 71.486 -0.33 € / Re 63.214 +0.16 EVENTS 31 March-1 April 11th CII Annual Marketing Summit 2011, Intercontinental The Lalit, Mumbai 1 April 4th International Conference On Cyber & Network Security, The Oberoi, New Delhi 5 April FSLRC Panel To Meet 8 April iGate Open Offer For Patni Shares 14-16 April 9th Conference & Interactive Workshop On Sucessful EPC Contracting In India: Addressing Fiscal & Challenges, The Imperial, New Delhi EXPERT VIEWS "Currently we (Vodafone) are having 42% stake in Vodafone Essar and after acquiring Essar's additional 33% stake in the joint venture our holding will go up to over 75%. So in order to be in compliance with the regulations, we could go for an IPO for the 1% stake or might scout for an Indian partner." Ben Padovan Spokesperson, Vodafone "After stakeholder consultations, the government has now decided to permit issue of equity, under the government route, in import of capital goods/ machinery/ equipment (including second-hand machinery)...It is expected that this measure will promote the competitiveness of India as an investment destination and be instrumental in attracting higher levels of FDI and technology inflows into the country." Government Statement "ICICI is an Indian bank, but it is over 50% (equity) foreign owned, it is owned by foreigners in that sense...for downstream investment it is a foreign company...If ICICI makes any downstream investment, that will be considered as FDI." RP Singh Secretary, DIPP WATCH OUT Beautiful People Noted economist and secretary general of FICCI Amit Mitra makes his debut in politics by contesting as a Trinamool Congress candidate. On Beautiful People this week Mitra talks to Anuradha Sengupta about his shift from the boardroom to electoral politics, his vision for the future of Bengal's economy and more. SHOW TIMINGS Sat 9 pm