Sensex Down For 8th Day; RBI Moves Seen

The BSE Sensex slid for the eighth straight session, the longest losing spell in at least two-and-a-half years, closing 0.4 per cent lower on Wednesday

The 30-share BSE index dropped 0.35 per cent, or 65.33 points, to 18,469.36 points, with 19 of its components losing ground. The 50-share NSE index, or Nifty, slipped half a percent to 5,537.15. Two shares fell for each that gained on a volume of 567 million shares on the NSE, lower than the 90-day average daily volume of 645 million shares.

"At current levels, most negatives - other than a likely fuel price hike, if it happens - are in the price," said Arun Kejriwal, director of research firm KRIS. "The market may stay flat for a while and hover in a narrow band, until there is a solid trigger to lift it up."

High fuel and commodity prices will keep troublesome inflation levels elevated, while the RBI will raise interest rates more aggressively than economists expected just three months ago, a Reuters poll showed.

The central bank raised interest rates by a sharper-than-expected 50 basis points on Tuesday and said fighting inflation was its top priority, even at the expense of short-term growth.

Financials closed mixed, while IT companies declined on worries over peer Cognizant Technology Solutions Corp's slowing growth rate.

Top motorcycle maker Hero Honda dropped 3.5 per cent after it posted a 16.5 per cent fall in quarterly profit, its fourth consecutive quarterly decline, due to higher advertising spend during the cricket World Cup and rising input costs.

Foreign funds have been net buyers of more than $3 billion of Indian stocks since the start of March.

However, they have sold Indian equities in five out of the last six sessions to May 2, leading to concerns they were cautious about investing in Indian stocks, and that this could turn into a short-term trend.

Mortgage lender Housing Development Finance Corp and top private lender ICICI Bank slid 3.2 per cent and nearly 1 per cent, respectively.

Leading lender State Bank of India and private lender HDFC Bank gained 1.2 per cent each.

Leading software companies Tata Consultancy Services and Infosys Technologies and Wipro declined 0.1 per cent and 1.4 per cent, respectively.

Oil and Natural Gas Corp advanced 5.3 per cent after Bloomberg reported the energy explorer is in talks to acquire oil sands reserves in Canada and may increase its investments in Kazakhstan to help offset declining production.

An ONGC spokeswoman could not be reached for a comment by Reuters.

Auto stocks suffered a double whammy as they digested the interest rate increase, while already grappling with slowing sales growth.

Tata Motors, Maruti Suzuki, Bajaj Auto and Mahindra & Mahindra declined between 0.3 per cent and 4.7 per cent.

The MSCI world equity index and the Thomson Reuters global stock index were down 0.2 per cent each by 1021 GMT.

Stocks That Moved
# Thermax fell 4.2 per cent to 613.30 rupees after its managing director said the company's margins won't improve in fiscal 2012 but the capital goods maker would try to retain them.

# Sun Pharma Advanced Research Co Ltd gained 1.2 per cent to 84.15 rupees after the unit of Sun Pharmaceutical Industries said it had received approval from the US Food and Drug Administration for its cancer treatment Docefrez injection.

Top Three By Volume on NSE
# Unitech on 25.2 million shares

# Jaiprakash Associates on 20.4 million shares

# Suzlon Energy on 17.5 million shares

Continued Vigilance Needed On Al Qaeda Money

Osama bin Laden's demise is unlikely to lead to an influx of terrorist funds into Western banks but the threat of retaliation means that banks need to remain extremely vigilant, according to regulatory experts. Industry figures believe the demise of the Al Qaeda chief has highlighted the importance of the sanctions and of the politically exposed persons (PEPs) regime.

Zia Ullah, a partner at Pannone in the UK, said that recent events should not prevent firms from continuing to screen bin Laden's name against EU and US sanctions lists. "People aren't going to stop screening the name because they won't want to have any link [in case] anything untoward happens," he told Thomson Reuters Accelus. Ullah said much would depend on whether bin Laden's name was taken off sanctions lists by the various government agencies, but he believed the name would remain intact.

"We have seen it with other entries, the identifier information changes to 'deceased' and that's it," he said.

Brian Dilley, head of KPMG's anti-money laundering practice, agreed and said that firms still needed to be extra-careful about the handling of suspect money. "In terms of his funds, they are likely to have been well-hidden already and not in any way associated with his name. His name is still on the official sanctions lists so firms will need to continue to search. I suspect the bin Laden name will remain on the list for some time to ensure that any movement of funds to his heirs from hidden sources are identified," he said.

Being Vigilant
Susannah Cogman, a partner at Herbert Smith, said firms needed to sit tight if they were in possession of frozen bin Laden money. "In the short term he remains on the sanctions lists, and if you have some of his assets frozen, keep them frozen. In the long term, something will clearly have to happen with his money - for example, if it falls to be inherited by someone who is not subject to sanctions. But I suspect in practice the political dimension will overtake this and hopefully any individual financial institution will not have too much head scratching to do about the disposal of his assets," she advised.

Duncan Aldred, a partner at CMS Cameron McKenna, said that firms needed to be looking more widely than bin Laden, particularly in light of the recent upheaval in the Middle East. He added that bin Laden's death had highlighted the wider importance of the PEPs regime.

"It highlights the fact that if you see the name [of Syrian president] Bashar al-Assad on something then you should be thinking 'What on earth is he doing moving those funds?'," he said.

The publicity surrounding the bin Laden situation had helped to illustrate exactly why the PEP regime had been put in place, he said. It had highlighted how successful people connected with such regimes could be in extracting funds the countries involved.

Lisa Osofsky, a regulatory adviser at risk consultancy Control Risks, pointed out that the terrorist leader had been caught through one of his accomplices and said that compliance staff and their colleagues should use this type of information to their advantage. She said that money laundering reporting officers had to be "quite broad" in terms of reading what was going on and should target some of those who were known to be bin Laden's confederates. She added that MLROs needed to cast their nets very widely in terms of who bin Laden had operated with, and should carry out the normal KYC checks while still treating him like a PEP with "extra, extra due diligence".

Osofsky, a former money laundering reporting officer at Goldman Sachs International in London, said it was well-known that bin Laden had come from a rich family and probably had some "amazing" fundraising capabilities. There might well, therefore, be a lot of money connected with the dead leader. Estimates have put bin Laden's fortune at up to 180 million pounds ($296 million), with much of the money likely to be hidden in secret bank accounts in the Middle East, Africa and South Asia.

"We know he has got lieutenants and that there are a lot of people out there doing his leg work. He managed to stay hidden because a lot of people were willing to help him over the years. These same people are willing to deal with the cash," Osofsky warned.

Ullah believed that there was unlikely to be an immediate influx of Al Qaeda money into the UK banking system following bin Laden's death; indeed, the opposite might be true.

"I don't think that any sensible or clever person involved in fundraising or funding would want to move money [now] as any significant money movement would alert the authorities and financial institutions. I think you are actually less likely to see movement in this period of time than normally. It would be highly suspicious and people's suspicions are more aroused at the moment than ordinarily," he explained.

Aldred agreed: "In a sense the silliest thing would be to move money that said bin Laden on it. The chances are that it won't say that so it therefore means that people have got to be extra-vigilant about stuff that doesn't have names on it because it is not just names that should make you suspicious; the general situation should as well."

Despite this both Aldred and Ullah agreed that firms needed to be especially watchful.

Aldred said that that bin Laden's death had "kicked up a hornet's nest", and that people needed to be aware of the consequences. Ullah said that banks needed to ensure that their anti-money laundering and counter-terrorist financing systems were "up to scratch".

"This would be the worst time possible to get implicated in any sort of funding issue or issue connected with terrorism so it's actually a time when [banks] need to be on their guard more than ever," he said. He added that he did not think that recent events would lead the UK'sFinancial Services Authority to change its regulatory agenda.

Cogman also agreed that the current political climate meant that firms needed to be constantly alert to sanctions and terrorism issues but said she did not anticipate that bin Laden's death would cause too many problems for firms.

"Would I expect to see a significant upsurge of suspicious activity as a result of his death? It's difficult to rule out entirely but I struggle to see how that would materialise in practice," Cogman noted.

Osofsky added that banks faced a difficult task in trying to identify suspected terrorist financing as both the 9/11 and London bombings demonstrated that small amounts of money could lead to huge losses of life. "The problem with any terrorist-related activity is that the amounts involved are tiny. It's hard for the banks but his death doesn't change anything," she said.

The Al Qaeda leader was killed following a raid on his Pakistani hideaway by US special forces on Sunday night. The 54-year-old was allegedly responsible for the New York atrocities on September 11, 2001, when thousands of civilians were killed following a devastating attack on the World Trade Centre.

Credit Unions Seek to Lift Small Biz Lending Cap

Even as bank lending to small businesses decreased in the last three years, lending by credit unions increased. Now, credit unions want congress to loosen the limits on how much the nonprofit financial institutions can lend to businesses.

A bill introduced by Sen. Mark Udall (D-Colo.) on March 8 would let credit unions increase their small business lending, now capped at 12 percent of assets, to 27 percent.

Credit unions had about $39 billion in outstanding loans to small businesses last year, up from $24 billion in 2006, says Bill Hampel, chief economist at the trade group Credit Union National Association, citing data credit unions report to regulators. The equivalent lending by commercial banks peaked in 2008 at nearly $700 billion and declined to $626 billion in 2010, according to bank regulatory filings. (Both measure loans under $1 million, which the government uses as a proxy for lending to small businesses.)

About two-thirds of the nation's 7,000 credit unions don't do any business lending at all, Hampel says. Of those that do, about 350 are near the cap, meaning business loans constitute between 7.5 percent and 12.5 percent of their assets, he says. Even at 7.5 percent, a credit union will start "tapping the brakes" on business lending and might reach the cap in three years, he says.

Banks oppose lifting the limit, saying that business lending takes tax-exempt credit unions away from their nonprofit mission of serving members. "Credit unions were granted tax-free status to help them serve individuals of modest means, not to get into business and commercial lending," Camden Fine, head of the Independent Community Bankers of America trade group, wrote in a March 3 letter to congressional leaders.

Hampel says lending goes to businesses owned by credit union members, and the average loan size is about $200,000. The 12 percent limit was created in 1998, and it doesn't apply to about 100 credit unions that were major business lenders before then and were grandfathered in. In addition, loans under $50,000 and loans guaranteed by the Small Business Administration don't count toward the cap. Attempts to pass a version of the bill last year in the Small Business Jobs Act failed.

JAGNote by The Wall Street Journal

Banks Rush to Improve Foreclosure Practices - Under orders from U.S. regulators, 14 financial institutions have until mid-June to lay out plans to clean up their mortgage-servicing operations-and another 60 days to make the changes.But progress is uneven. Rising Oil Prices Lift Total Profit - French oil major Total posted a 51% increase in net profit in the first quarter, boosted by higher commodity prices in spite of lower petroleum output owing to the continuing unrest in Libya. RIM Warns of Weak BlackBerry Sales - BlackBerry makerResearch In Motion cut its earnings guidance for its fiscal first quarter, blaming slower-than expected smartphone shipments. Shares plunged 11% in late trading.Daimler`s Profit Nearly Doubles - Germany`s Daimler reiterated its full-year earnings outlook after first-quarter net profit nearly doubled to $1.75 billion, fueled by booming demand for luxury cars, particularly in China, and a recovery in truck sales. Microsoft Net Up, but Windows Sales Down - Microsoft`s profit rose sharply, powered by sales of its Office software and Xbox system, though the company also saw declining sales of its flagship Windows software.NYSE Shareholders Say Talk to Nasdaq - NYSE Euronextshareholders urged the company to open merger discussions with rival Nasdaq OMX Group.Buffett`s Silence on Sokol to End - At the annual meeting of Berkshire Hathaway this weekend, Warren Buffett is expected to say he doesn`t condone the conduct of David Sokol, one of his former top lieutenants, in purchasing stock in a company that Berkshire eventually bid for. Chrysler to Repay Government Loans - Chrysler plans to take out bank loans and sell debt later this quarter to repay $6.6 billion in bailout loans from the U.S. and Canadian governments.Exxon, Shell Profits Soar On Higher Oil Prices - Exxon Mobil said first-quarter earnings surged 69% as it benefited from high oil prices, stronger refining margins and a jump in natural-gas production. Royal Dutch Shell and Occidental Petroleum also posted soaring profits.Three Top Builders Post Bigger Losses - Pulte, Meritage and Ryland report bigger losses and lower revenue as closings and prices remain weak

Statements From L.A. Mayor Villaraigosa and Council President Garcetti on Ratification of Pension and Healthcare Agreement by a Majority of Coalition

Statements From L.A. Mayor Villaraigosa and Council President Garcetti on Ratification of Pension and Healthcare Agreement by a Majority of Coalition Employees

Los Angeles, Calif. /California Newswire/ — Mayor Antonio Villaraigosa and Council President Eric Garcetti issued the following statements today on the ratification of the pension and healthcare agreement by a majority of employees represented by the Coalition of LA City Unions:

Statement from Mayor Villaraigosa:

“States and cities across the country are grappling with burgeoning budget deficits and struggling to find solutions. Stalemate often stands in the way of resolution and core services are often cut without considering the long-term impact.

Here in Los Angeles, we have a different story to tell. Workers and city leaders have come together to negotiate a structural solution. Our compromise protects core services while saving hundreds of millions of taxpayer dollars. It provides workers with the economic stability of a guaranteed paycheck protected from furloughs, as well as the peace of mind that comes with health care they can count on when they retire.

I appreciate the willingness of our City employees to work with us to find long-term solutions and put posturing aside for the good of the people and the City of Los Angeles.”

Statement from Council President Garcetti:

“The City and the Coalition put politics aside and focused on problem solving to achieve structural reform, lower budget costs and increased service delivery from thousands of workers. As for the rest, we are moving forward immediately with furloughs and a retiree benefits freeze. We created clear alternatives to ensure the budget is balanced under any scenario and those plans are now being implemented.”

ABOUT THE EDITOR: Valerie Gotten (aka Valerie G) is an abstract painter, former movie stand-in, and volunteers for "green events" to help raise awareness about global warming, and help preserve california's wilderness and natural beauty.

The Next Hurdle For Indian IT

India is fast becoming a global hub for back-office services as U.S. and European companies increasingly shift their information technology services, call-center operations and other business processes to it, either by opening their own units there or by outsourcing processes to Indian service providers.

What's fueling the stampede, of course, is the desire to gain access to the country's lower-cost, high-quality labor--in some technology areas, higher-quality labor--as well as global technological changes that make it possible to offshore white-collar activities that once had to stay close to home.

Infosys Technologies (nasdaq: INFY -news - people ), one of India's premier technology services companies, is based in Bangalore, ground zero in the offshoring ferment. Founded in 1981, it helps Fortune 500 companies design, build and maintain very large business-software applications, such as an integrated merchandising solution and a Web-based broker trading platform, and also provides IT-consulting services.

Infosys grew modestly during its first decade, finishing 1991 with $3.89 million in revenue. The liberalization of the Indian economy in 1991 spurred the growth of the company, which took the opportunity to globalize its operations. Its revenue exploded, to about $121 million by fiscal year 1998-99. Application-development costs in India were one-fifth of U.S. levels, so Western customers continued to jump on the offshoring bandwagon. By fiscal year 2002-03, the company's revenue stood at $754 million.

Yet the Indian IT-outsourcing market is already changing, and analysts point to some dark clouds on the sector's horizon. Giant IT services firms, such as Accenture (nyse: ACN - news - people ) and Electronic Data Systems (nyse: EDS - news - people ), and many global IT-consulting firms, such as Computer Sciences (nyse: CSC - news -people ), are opening their own software-development centers in India. So are large Western software-product companies, such as Microsoft(nasdaq: MSFT - news - people ) and Oracle (nasdaq: ORCL - news -people ). All these will compete with Indian companies for local talent.

Global IT-services firms also compete for work against Infosys and its Indian peers. Eventually, the software-product companies may even encroach on some service areas. At the same time, customers are squeezing IT vendors--including Indian technology firms--for price cuts across the board. Margins have fallen.

Narayana Murthy, the co-founder and chairman of Infosys, believes that his company is well positioned to compete with both Indian and Western challengers in the fast-growing market for offshore IT outsourcing. Offshoring isn't solely a matter of arbitraging low-cost labor, he argues. Providing low-cost, high-quality software-development services remotely requires well-developed processes for managing large-scale projects in distributed locations--capabilities that Indian technology services companies have honed during the past two decades.

In a conversation at the company's Bangalore headquarters with Jayant Sinha and Gautam Kumra, both principals in McKinsey's Delhi office, Murthy discussed these capabilities, the economic differences between Indian and Western IT services firms and the challenges facing Infosys.

McKinsey Quarterly: Western companies have long had the opportunity to move IT services offshore, but until recently only a few pioneers did. Now the climate has changed dramatically. From your perspective, what has put the bloom in the offshoring rose?

Narayana Murthy: While the pressure on Western corporations to leverage the power of technology has been mounting for years, it became acute in the late '90s, and there was a tremendous shortage of trained manpower to do the application-development work involved. Infosys and other Indian companies have the trained manpower and can do the work while giving greater value for money. That, I would say, is what's driving this.

But we also have had to work hard to create awareness among Western companies that we could do the work. In the early '90s, when we went to the United States to sell our services, most chief information officers didn't believe that an Indian company could build the large applications they needed. The CIOs were very nice to us, of course. They offered us coffee or tea, listened to what we had to say and then said, "Look, don't call us--we'll call you." We realized that there was a huge gap between, on the one hand, how prospective Western clients perceived Indian companies and, on the other, our own perception of our strengths.

Thanks to a concerted effort by our industry association--the National Association of Software and Service Companies--by individual companies in our industry and by the government of India, we mounted a campaign to enhance awareness among prospective clients in Western countries of our sector's value proposition. Western companies had a tremendous shortage of trained manpower, and we made them aware that we had a solution. That was how it took off. By 1999, about 185 Fortune 500 companies had started sourcing software from Indian companies. The fact that the revenues of India's technology services sector grew from about $160 million or so in 1991 to about $10 billion last year is a very clear indication that there is greater acceptance of our sector's value proposition.

Still, I would say that awareness among Fortune 500 CEOs of what Indian companies can offer has become even sharper since 2001, when the technology bubble burst and companies started trimming their IT budgets and looking for better value for their money.

Ratan Tata reveals why he did not get married

Revealing one of the best kept secrets of his personal life, the bachelor industrialist Ratan Tata has said that he had fallen in love and had come seriously close to getting married as many as four times.

But in the hindsight, he thinks it was not a bad thing to remain unmarried and the situation would have been more complex had he got married, Tata said in an interview to CNN International's Talk Asia programme.

"When you asked whether I'd ever been in love, I came seriously close to getting married four times and each time it got close to there and I guess I backed off in fear of one reason or another," he said.

He replied in the affirmative when asked whether he had ever been in love. When asked how many times, he replied, "Seriously, four times."

Ratan Tata, 73, heads one of the country's biggest business empires which comprises nearly 100 firms with revenues totalling about $67 billion.

He is scheduled to retire in December, 2012 when he turns 75.

Asked to speak more about his love life, Tata said: "Well, you know one was probably the most serious was when I was working in the US and the only reason we didn't get married was that I came back to India and she was to follow me..."

"... and that was the year of the, if you like, the Indo-Chinese conflict and in true American fashion this conflict in the Himalayas, in the snowy, uninhabited part of the Himalayas was seen in the United States as a major war between India and China, and so she didn't come and finally got married in the US thereafter."

Asked why he never got married, Tata said: "Each of the occasions (the four times he was close to getting married, but did not) was different. But in hindsight, when I look at the people involved, it wasn't a bad thing what I did. I think it may have been more complex had the marriage taken place."

Asked whether any of the people he was in love with were still in the city, he replied in the affirmative, but declined to speak any further on the matter.

"Oh, well, because of the people that are here, and, of course, this may be aired in the US. . . So I'd be in trouble, whatever I do. So I think I'd better stop here," he added.

Speaking about the business environment in India, Tata said in the CNN International's Talk Asia interview that his group has succeeded in growing without indulging in things like kickbacks and bribes.

"I would say that we could have grown faster and could have prospered more as a group, but we have never, we have never in fact partaken in this kind of activity," he added.

Asked whether anyone in his company or any lobbyist did anything inappropriate or illegal, he added: "I can say with my hand to my heart that we have not in fact partaken in any clandestine activity. I am hopeful that the investigations that are underway will truthfully bring out the position and that the truth will be on the table before too long."

Speaking further about the corruption issue, he added: "I think what's happening now in terms of things being before the courts, I hope will put things in the right perspective. I hope that it doesn't become a nation of scandals and allegations as they are," he said.

"I think more importantly the media has to be more circumspect and be careful they don't malign or allege or convict people before they've had a fair trial," he added.

Asked whether it was hard to be an honest businessman in India, Tata said: "I think there are many honest businessmen, I think there are many that bend. I'm happy that I have not bent, not that I am dishonest, that I have not bent."

Besides the group's promoter company Tata Sons, Ratan Tata is chairman of major group companies like Tata Motors, Tata Steel, Tata Consultancy Services, Tata Power, Tata Global Beverages, Tata Chemicals, Indian Hotels and Tata Teleservices.

During his tenure, the group's revenues have grown nearly 12-fold, totalling $67.4 billion in 2009-10.

He also serves on the boards of Fiat SpA and Alcoa and is also on the international advisory boards of Mitsubishi Corporation, the American International Group, JP Morgan Chase, Rolls Royce, Temasek Holdings and the Monetary Authority of Singapore.

Cost cutting: Obama to tax rich Americans

In a pathbreaking move, US President Barack Obama said he will not extend tax cuts for rich Americans.

Explaining that America cannot support the rich population with tax sops anymore, Obama said he would not renew the ten-year reduction for families make more than $250,000 a year and individuals making more than $200,000.

Middle class Americans will continue to enjoy tax benefits.

However, critics point out that rich Americans already pay a higher taxes when compared to rich citizens of other European nations.

Pointing to the huge deficit caused by the controversial policies, Obama said, "We are ready to give tax cuts to every American making $250,000 or less. For any income over this amount, the tax rates would go back to what they were under President Clinton."

"From our first days as a nation, we have put our faith in free markets and free enterprise as the engine of America's wealth and prosperity. More than citizens of any other country, we are rugged individualists, a self-reliant people with a healthy skepticism of too much government," he said.

Recounting America's downfall, Obama said the country's finances were in great shape till year 2000.

"We went from deficit to surplus. America was actually on track to becoming completely debt-free, and we were prepared for the retirement of the Baby Boomers. But after Democrats and Republicans committed to fiscal discipline during the 1990s, we lost our way in the decade that followed," he said.

The increased spend on two wars and an expensive prescription drug program and tax cuts for millionaires and billionaires have wrecked the nation's fiscal status, Obama said.

Tax cuts will force the nation to borrow an average of $500 billion every year over the next decade.

"When I took office, our projected deficit was more than $1 trillion. On top of that, we faced a terrible financial crisis and a recession that, like most recessions, led us to temporarily borrow even more. In this case, we took a series of emergency steps that saved millions of jobs, kept credit flowing, and provided working families extra money in their pockets. It was the right thing to do, but these steps were expensive, and added to our deficits in the short term," Obama said.

Obama said by the end of this decade, the interest we owe on our debt could rise to a whopping $1 trillion.

"As the Baby Boomers start to retire and health care costs continue to rise, the situation will get even worse. By 2025, the amount of taxes we currently pay will only be enough to finance our health care programs, Social security, and the interest we owe on our debt. That's it. Every other national priority - education, transportation, even national security will have to be paid for with borrowed money," Obama said.

Warning that rising debt will cost Americans their jobs and hit the economy, Obama said it will also prevent America from making the investments the nation needs to win the future.

"We won't be able to afford good schools, new research, or the repair of roads and bridges all the things that will create new jobs and businesses here in America. Businesses will be less likely to invest and open up shop in a country that seems unwilling or unable to balance its books. And if our creditors start worrying that we may be unable to pay back our debts, it could drive up interest rates for everyone who borrows money making it harder for businesses to expand and hire, or families to take out a mortgage,"

Obama announced a four-pronged strategy to put the nation on the growth path.

The first is to keep annual domestic spending low by building on the savings that both parties agreed to last week a step that will save America about $750 billion over twelve years, he said.

The second step is to find additional savings in the defence budget.

The third step is to further reduce health care spending in the budget.

And finally the fourth is to reduce spending in the tax code.

Taking the wealthiest Americans is the only way to prevent a tax hike on middle-class Americans, Obama said.

"My budget calls for limiting itemised deductions for the wealthiest 2 per cent of Americans a reform that would reduce the deficit by $320 billion over ten years," Obama said.

Obama said he is confident that these measure can reduce the deficit by $4 trillion over the next twelve years.

He explained that this cost cutting method would help save $2 trillion and will lower interest payments on the debt by $1 trillion.

"It calls for tax reform to cut about $1 trillion in spending from the tax code. And it achieves these goals while protecting the middle class, our commitment to seniors, and our investments in the future.

If the recovery speeds up and our economy grows faster than our current projections, we can make even greater progress," Obama said optimistically.

Kotak MF launches 370 Days FMP

Kotak mutual fund launched a new scheme named as Kotak FMP Series 44. The scheme is a close ended debt scheme, having the time duration of 370 days from the date of allotment of units. The New Fund Offer (NFO) price for the scheme is Rs 10 per unit. The new issue will open for subscription on 15th April 2011 and will close on 18th April 2011.
Exit and entry load charge will be nil for the scheme. The schemes performance will be standardized against Crisil Short Term Bond Index. The scheme offers both growth as well as dividend payout option. The minimum application amount is Rs. 5,000 under the scheme and in multiples of Rs. 10 thereafter. Mr Deepak Agrawal and Mr Abhishek Bisen be the Fund Manager for the scheme The fund looks for a minimum subscription amount of Rs. 1 crore under the scheme as collection.

The asset allocation of scheme will be in such a way that the scheme’s objective of generating return will be meet but with a minimum exposure to risk, hence 100 per cent of assets will be allocated in debt, money market instruments and government securities with low to medium risk profile. Therefore, through investment in a portfolio of debt and money market instrument, the fund’s primary objective is to avoid interest rate volatility for generating the income.

The fund had also launched a similar scheme on 18th March 2011 named as Kotak FMP S – 42. The scheme is showing the positive return of 0.46 per cent during March 29, 2011 to April 13, 2011. The current NAV of the scheme is Rs. 10.0684 as on 13th April 2011 under dividend option of the scheme. Another scheme in same category, which commenced on 14th March 2011, named as Kotak FMP S – 40, is posting the positive return of 0.43 per cent during March 29, 2011 to April 13, 2011.

Proud to be an Indian - Business legends

1. Lakshmi N Mittal (Rank 6)

With a wealth of $31.1 billion, ArcelorMittal chairman and CEO, Lakshmi Mittal pipped Mukesh Ambani to become the richest Indian and the 6th richest man in the world.

Last year, his total wealth was $28.7 billion.

Mittal founded Mittal Steel Company (formerly the LNM Group) in 1976. In 2006, the company merged with Arcelor to become the world's largest steelmaker.

2. Mukesh Ambani (Rank 9)

Reliance chairman Mukesh Ambani is the second richest Indian with a wealth of $27 billion.

Mukesh Ambani's fortune stood at $29 billion last year and he was the 4th richest man in the world.

Mukesh Ambani had been the richest Indian for three years from 2007 to 2010.

(World ranking in brackets)

3. Azim Premji (Rank 36)

Software czar Azim Premji, with a fortune of $16.8 billion is the third richest Indian. Premji's wealth has slipped from $17 billion.

Premji plans to set up a new endowment trust with a Rs 8,846 crore ($2 billion) to fund various educational initiatives.

4. Shashi & Ravi Ruia (Rank 42)

Brothers Shashi & Ravi Ruia, who head the Essar group are the fourth richest businessmen in India. Their net worth has risen from $13 billion last year to $15.8 billion.

5.Savitri Jindal & family (Rank 56)

Savitri Jindal is the richest woman in India Inc. The non-executive chair of O P Jindal Group, she took over the steel and power conglomerate founded by her late husband Om Prakash in 1952.

Her net worth rose to $13.2 billion from $12.2 billion in 2010.

6. Gautam Adani (Rank 81)

Chairman of the Adani Group, Gautam Adani's net worth has jumped to $10 billion from $4.8 billion last year to become the 6th richest Indian.

7. Kumar Mangalam Birla (Rank 97)

With a net worth of $9.2 billion, chairman of the Aditya Birla Group, Kumar Birla is the 7th richest person in India. His fortune has risen from $7.9 bilion last year.

8. Anil Ambani (Rank 103)

It has been a downfall for the chief of Reliance Anil Dhirubhai Ambani Group, Anil Ambani. He has fallen 4 places in the richest list with a net worth of $8.8 billion. Last year, his fortune was $13.7 billion.

9. Sunil Mittal & family (Rank 110)

With a fortune of $8.3 billion, chairman of Indian telecom giant Bharti Airtel, Sunil Mittal and family maintained their position this year as well.

Last year also, they were ranked the ninth richest in the country with a wealth of $7.8 billion.

10. Adi Godrej & family (Rank 130)

Chairman of the Godrej group, Adi Godrej is the tenth richest Indian with a new worth of $7.3 billion, up from last year's $5.2 bilion.

11. Kushal Pal Singh (Rank 130)

Chairman of DLF, Kushal Pal Singh was pushed out of the top 10 list this year. His net worth fell from $9 billion in 2010 to $7.3 billion.

12. Anil Agarwal (Rank 154)

Agarwal is founder-director and executive chairman of the UK-based Vedanta Resources corporation. He is the 12th richest Indian with a fortune of $6.4 billion, and the 154th richest man in the world.

Agarwal is also chairman of Sterlite and is a director of BALCO, HZL, and Vedanta Alumina Ltd.

13. Dilip Shanghvi (Rank 159)

Dilip Shanghvi, chairman of Sun Pharmaceuticals saw a rise in fortune to $6.1 billion from $4.6 billion last year.

14. Shiv Nadar (Rank 182)

Shiv Nadar, founder of HCL, saw his fortune zoom to $5.6 billion from $4.2 billion last year. He is the 14th wealthiest Indian and the world's 182nd richest man.

15. Malvinder & Shivinder Singh (Rank 265)

Former Ranbaxy CEO Malvinder Singh and his brother Shivinder Singh saw a rise in wealth to $4.1 billion from $3.2 billion last year.

16. Kalanithi Maran (Rank 310)

Media tycoon Kalanithi Maran heads Sun TV, India's biggest regional broadcaster. From $2.9 billion last year, Maran's wealth has risen to $3.5 billion.

17. Uday Kotak (Rank 347)

Uday Kotak, founder of the Kotak Mahindra Bank is ranked at 17 among the richest Indians. His fortune stood at $3.2 billion.

18. Micky Jagtiani (Rank 376)

Micky Jagtiani, CEO of the Landmark Group has a fortune of $3 billion. He has moved 3 places ahead compared to last year in the rich list.

19. Subhash Chandra & family (Rank 393)

Media baron and Chairman of Essel Group, Subhash Chandra,with a fortune of $2.9 billion, has moved one place ahead in the list.

20. Pankaj Patel (Rank 440)

Pankaj Patel, chairman and managing director of Cadila Healthcare, the fifth largest pharmaceutical company in India has a net worth of $2.6 billion.

21. Indu Jain (Rank 440)

Indu Jain is the second richest woman in India. Chairperson of Bennett & Coleman Ltd and a spiritualist, her fortune stands at $2.6 billion, lower than $2.8 billion last year.

22. G M Rao (Rank 440)

Founder chairman of the GMR Group, G M Rao's wealth has fallen to $2.6 billion from $3.2 billion last year.

23. Cyrus Poonawalla (Rank 512)

Cyrus Poonawalla is the founder of Serum Institute of India, fifth biggest vaccinemaker by volume in India. His net worth is $2.3 billion.

24. Rajan Raheja & family (Rank 540)

Rajan Raheja started off his innings in the construction business. After establishing himself in the realty market, Rajan Raheja Group diversified into manufacturing, financial services and media. His net worth stands at $2.2 billion.

25. Desh Bandhu Gupta (Rank 564)

Desh Bandhu Gupta established Lupin in1968. Based in Mumbai, it is one of the world's largest manufacturers of the anti-TB drugs. Gupta's fortune is pegged at $2.1 billion.

26. N R Narayana Murthy & family (Rank 595)

Infosys co-founder and mentor Narayana Murthy is the 26th richest Indian with a net worth of $2 billion.

Murthy has established the Catamaran Venture Fund with a total of $130 million dollars to invest in early stage companies. Murthy plans to invest in startups focussing on healthcare, education and nutrition.

27. Gautam Thapar (Rank 595)

Chairman and the chief executive officer of the Avantha Group, Gautam Thapar's net worth is estimated to be $2 billion.

28. Sudhir & Samir Mehta (Rank 595)

Brothers Sudhir & Samir Mehta run the pharmaceuticals and power company, Torrent group. Their net worth is pegged at $2 billion.

29. Aloke Lohia (Rank 595)

Indorama Ventures listed on the Stock Exchange of Thailand in February 2010 was established in 1995 by Aloke Lohia. Lohia's net worth is pegged at $2 billion.

Indorama group of companies was established in Indonesia by group patriarch ML Lohia. Today, his sons have established leading companies that are among the world's largest manufacturers of polyester.

30. Venugopal Dhoot (Rank 651)

Venugopal Dhoot is chairman of Videocon Corporation, which makes a wide range of electronic consumer goods. Venugopal Dhoot was instrumental in expanding Videocon Industries into a multi-billion dollar business conglomerate. His net worth stands at $1.9 billion.

31. Chandru Raheja (Rank 651)

A low-profile real estate entrepreneur, Chandru Raheja scaled up his small scale property firm into a major real estate group K. Raheja group. Shoppers Stop, Hypercity and In Orbit Malls are a part of the K.Raheja group. His fortune stands at $1.9 billion.

32. Nandan Nilekani & family (Rank 692)

Infosys co-founder Nandan Nilekani with a net worth of $1.8 billion is a part of India's richest list. He left Infosys in July 2009 to head the Unique Identification Authority of India (UIDAI).

33. Ajay Kalsi (Rank 736)

Ajay Kalsi is the CEO of Indus Gas Ltd, an oil & gas exploration and development company. His net worth is pegged at $1.7 billion.

34. Rahul Bajaj (Rank 782)

Rahul Bajaj took over the Bajaj Group in 1965. Under his leadership, Bajaj Auto grew to become one of India's top automobile companies. His fortune stands at $1.6 billion.

35. S Gopalakrishnan & family (Rank 782)

Infosys co-founder and CEO, S Gopalakrishnan is among the richest Indians with a wealth of $1.6 billion.

36. Brijmohan Lall Munjal (Rank 833)

Founder of The Hero Group, Brijmohan Lall Munjal's fortune is pegged at $1.5 billion.

Founder-chairman of Dr Reddy's Labs, K. Anji Reddy's wealth stands at $1.5 billion.

38. Vijay Mallya (Rank 879)

Vijay Mallya, Mallya took over as Chairman of United Breweries Group in 1984 from his father Vittal Mallya. The group has grown into a multi-national conglomerate of over sixty companies. Mallya has a fortune of $1.4 billion.

39. Ajay Piramal (Rank 879)

Ajay Piramal is the chairman of Piramal Enterprises Limited. Piramal nows heads the Rs 4,000-crore (Rs 40 billion) group, comprising Nicholas Piramal, the fourth-largest pharmaceutical company in India. His net worth stands at $1.4 billion.

40. Vikas Oberoi (Rank 879)

Real estate king Vikas Oberoi, heads Oberoi Constructions. His net worth is $1.4 billion. Morgan Stanley bought 10 per cent in Oberoi Constructions for $152 million in 2007.

41. Baba Kalyani (Rank 938)

Baba Kalyani is chairman and managing director of Bharat Forge, the world's second-largest forgings manufacturer. His net worth is pegged at $1.3 billion.

42. Rama Prasad Goenka (Rank 938)

Rama Prasad Goenka is the Chairman Emeritus of the RPG Group, a multi-sector industrial conglomerate. His net worth is $1.3 billion.

43. Keshub Mahindra (Rank 993)

Keshub Mahindra, chairman of Mahindra & Mahindra is also a well-known philanthropist. His fortune is pegged at $1.2 billion.

44. K Dinesh & family (Rank 993)

K Dinesh is one of the Infosys co-founders. He is currently the head of Quality, Information Systems and the Communication Design Group at Infosys. Dinesh is also the Chairman of Infosys Australia. His net worth is estimated to be $1.2 billion.

45. Rakesh Jhunjhunwala (Rank 993)

A well known, famous equity investor in India, Jhunjhunwala manages his own portfolio as a partner in his asset management firm, Rare Enterprises. His fortune is estimated to be to the tune of $1.2 billion.

46. Brij Bhushan Singal (Rank 993)

Brij Bhushan Singal is the chairman of Bhushan Steel. The company is among the largest steel producers in India. BSL currently exports to Europe, USA, Canada, Africa, China and the Middle East, in addition to the Asian markets. His net worth is pegged at $1.2 billion.

47. Yusuf Hamied & family (Rank 1057)

Yusuf Khwaja Hamied is chairman of Cipla, a company founded by his father Khwaja Abdul Hamied. His net worth is $1.1 billion.

48. S.D. Shibulal & family (Rank 1,057)

Shibulal, Chief Operating Officer of Infosys, is one of the co-founders and member of the Board of Directors of Infosys Technologies Limited.

He has over three decades of IT leadership experience and has played a pivotal role in building Infosys. His net worth is pegged at $1.1 billion.

49. Bhupendra Kumar Modi (Rank 1,057)

Bhupendra Kumar Modi is the chairman of Spice group. Modi has set up joint ventures in partnership with global companies such as Xerox Ltd, Alcatel Network Systems Ltd, Telstra Corporation, Telekom Malaysia. His net worth is $1.1 billion.

50. Mangal Prabhat Lodha (Rank 1,057)

Realty baron Mangal Prabhat Lodha founded Lodha Developers in 1980. The company has scaled up in terms of profit and projects in the last three years. His net worth is estimated to be $1.1 billion.

51. Ramesh Chandra (Rank 1,140)

Ramesh Chandra is the founder of the multi-billion dollar realty company Unitech. His net worth is $1 billion.

52. Anu Aga (Rank 1,140)

Anu Aga led Thermax Ltd, the Rs 3,246-crore energy and environment engineering major, as its chairperson from 1996-2004. Now, she devotes her time to social work. Her net worth is pegged at $1 billion.

53. Ashwin Dani (Rank 1,140)

Ashwin Dani started his career as a development chemist with BASF, Detroit and joined Asian Paints in 1968 as a senior executive.

He is currently the vice-chairman and managing director of Asian Paints. He is also the Vice President of the Federation of Indian Chambers of Commerce and Industry (FICCI). His fortune is $1 billion.

54. Harindarpal Banga (Rank 1,140)

Harindarpal Singh Banga serves as Vice Chairman Emeritus of Noble Group Limited. A Master Mariner, Banga has years of experience in the maritime and logistics industry. His net worth is pegged at $1 billion.

55. Mofatraj Munot (Rank 1,140)

Founder, promoter and chairman of Kalpataru Group, Mofatraj Munot has over 45 years of experience in the real estate space and property development. His fortune stands at $1 billion.