China slowdown spreading, HSBC services PMI shows
BEIJING - China's services sector cooled in November to its weakest growth in three months, an HSBC purchasing managers' index showed on Monday, the latest data portraying an economy slowing quickly and in need of policy support.

India - Economy and Market
Some states may miss fiscal consolidation target: ICRA
"The moderating macroeconomic outlook is likely to have a considerable bearing on the pace of revenue growth in the near-term, even as the ability of the states to curtail the growth of committed expenditures is likely to be limited," the rating agency said, adding it will be challenging to stick to the fiscal consolidation target in this environment. 

It also said some states may find it challenging to report revenue surpluses this fiscal. As per the fiscal targets set by the 13th Finance Commission, 19 out of the 28 states are required to eliminate their revenue deficits and curtail their financing gaps (defined as revenue balance plus capital receipts less capital outlay and net lending) to 3% of gross state domestic product (GSDP) this fiscal.

Purchasing managers index hits 3-month high: HSBC
The manufacturing and services sector index, as measured by HSBC India Composite Index, rose sharply to a three-month high in November to 52.3 from 50.3 in the previous month, even though the private sector output rose only modestly, says the HSBC Purchasing Managers Index.

"The HSBC India Composite Index, which covers both the manufacturing and service sectors, posted 52.3, up from 50.3 in October, to a three-month high. The seasonally adjusted business activity index posted 53.2 in November, above the 50.0 no-change threshold that separates growth from contraction.

Retail reforms on hold; shares slide
India has put a plan to open up its retail industry to foreign supermarkets on hold, a senior government source told Reuters on December 4. The first major economic reform since Prime Minister Manmohan Singh's graft-riddled term was reelected in 2009 has been met with fierce opposition from some who say it will destroy the livelihood of millions of small traders. New Delhi continues to disappoint foreign direct investors, with domestic politics seemingly relentless in its refusal to allow major economic reforms.

India's economy runs twin fiscal and current account deficits. It needs inflows of foreign capital both to fuel economic growth and to finance shortfalls on the current account which stands at 3 percent of GDP. In 2010 India was the only BRIC country to see a decline in foreign direct investment. The combined inflows from FDI and institutional investors declined from $16 billion in the first quarter of this year to only $4 billion in the second quarter. This drop-off is putting pressure on the rupee which hit an all-time low against the U.S. dollar last month. The weakness of the rupee in turn fuels domestic inflation which is already above 10 percent.

Welfare payments: Why Jharkhand's initiatives are relevant for all of India
Jharkhand is readying to use UID to ensure NREGS payments reach only the true beneficiaries. This is the first big test of the UID proposition

FinMin wants FDI in airlines within SEBI framework
The Finance Ministry is understood to have given the green signal to the proposal to allow 26 per cent FDI by foreign airlines in the private carriers, many of them facing a cash crunch, with a rider that such investments should not violate Sebi's takeover code.

No plan to decontrol diesel pricing, says govt
The government has no plans to decontrol diesel pricing but wants consumer to "get used" to changes in petrol rates being effected every fortnight.

"There is no immediate plan to decontrol diesel or LPG as they have cascading effect (on general prices)," Minister of State for Petroleum and Natural Gas R P N Singh told reporters here.

India Inc raised $2.47 billion in October through ECBs, FCCBs
Around 80 companies raised around $2.07 billion for various projects through the automatic route in October which does not require approval from the Reserve Bank of India (RBI) or the government.

Another $404 million was raised through the approval route, according to the RBI data.
Indian shares falter on profit-taking; retailers drag

Uncertainty over foreign investments in retail sector plagues

Technology News –
RIL plans to offer 4G services on Rs 3500 tablets

RIL is the only company to have pan-India spectrum to offer wireless broadband services on the 4G technology platform having paid Rs 13,000 crore for these airwaves

The RIL services is based on fourth generation, or 4G, technology which offers faster internet access compared to third generation (3G) services. RIL plans to launch tablets at around Rs 3,500 and bundle it with data offering as low as 1 GB at Rs 10, a tenth of the current 3G prices.

Slump in HP business, higher tax rate to hit growth
Sustained weakness relating to the company's biggest client Hewlett Packard, or HP, continues to drag down MphasiS. Business from the HP channel has declined by eight percentage points to 62% over the past five quarters. HP has been struggling to renew large multi-year contracts and the failure to renew the deals is likely to create pricing and volume pressure on MphasiS' profitability.

US optical networking firm expands Bangalore research facility
BANGALORE: Infinera Corp, a leading US provider of optical networking systems to telecom carriers, Monday announced it is expanding its research and development facility in this tech hub.

Wipro leading IT service provider in Saudi Arabia
Global software major Wipro has emerged as a leading IT service provider in Saudi Arabia with a commanding position in the kingdom, the IT bellwether said on Monday.

Entering the region a decade ago in partnership with Dal Al Riyadh in Al Khobar, the company consolidated its presence by forming a joint venture with the well-diversified group to form Wipro Arabia Ltd for serving a large number of clients across the kingdom.

E-Commerce spurt spawns new services
Services like logistics, delivery & payment collections and referral services, which are often complementary to online transactions, have become crucial for the e-commerce industry as portals jostle for more clicks in a crowded space.

Start-ups are moving in to provide these services exclusively focusing on this burgeoning space. It is a nascent sector but may see traction shortly.

SAP splashes out in cloud-computing business on fear of losing ground to Oracle
FRANKFURT: SAP's $3.4 billion takeover of SuccessFactors will help it keep up with peers in the frenzied race for cloud-computing business, even if the price it paid is very high at first glance, analysts said on Monday.

"We believe SuccessFactors could be a very good strategic fit for SAP in the cloud sector and we prefer the decision to grow externally in this booming area," DZ Bank analyst Oliver Finger said.

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