SEBI Allows 123 Entities to Set Up AIF’s

India’s stock market regulator Securities and Exchange Board of India (SEBI) has allowed as many as 123 entities to set up AIFs newly created class of pooled in investment vehicles for real estate, private equity and hedge funds in less than two and half-years.

The 123 Alternative Investment Funds (AIFs) have been registered with SEBI since July 2012.Of these, around 34 entities got the market regulator's approval to operate so far this year (January-November), 67 in 2013 and the remaining 22 in 2011.

The AIFs that have registered with Sebi in November are Religare Dynamic Trust, Indus Way Emerging Market Fund and Carpediem Capital Partners Fund and those registered in October are Singular India Opportunities Trust.

The regulator had notified in May 2012, the guidelines for this new class of market intermediaries. AIFs are basically funds established or incorporated in India for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.

Under Sebi guidelines, AIFs can operate broadly in three categories. The Sebi rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.

HAL to Build Cryogenic Engines for ISRO

The Hindustan Aeronautics Limited (HAL) said it will set up a facility in Bengaluru to manufacture cryogenic engines for ISRO’s heavy light rockets.

ISRO will provide Rs 139 crore for setting up the facility and it will be built at the HAL campus in Bengaluru with HAL’s personnel manning it once it’s ready. Meanwhile, ISRO will provide Rs 139 crore for the facility.

A cryogenic rocket engine is a rocket engine that uses a cryogenic fuel or oxidizer (or both) liquefied and stored at very low temperatures.These engines were one of the main factors of Nasa’s success in reaching the moon by the Saturn V rocket.

India has been working for many years on developing a cryogenic engine.

The major facilities planned at this upcoming ICEM unit include rotary vacuum brazing facility, machinery for sheet metal forming, CNC machines (mainly five axis) for complex geometry machining, tungsten inert gas/metal inert gas welding, the heat treatment facilities for special materials and testing facilities. The facility is expected to have a turnover nearly Rs 9 crore per annum.

IMF Says Oil Decline Good for Economy

IMF said recent decline in oil prices will help boost global economy.

According to IMF chief Christine Lagarde, it is good news for the global economy. For the United States, low energy prices would help accelerate the economic growth to a 3.5 per cent next year from the October forecast of 3.1 per cent, she said, adding that Europe is also expected to benefit from lower oil prices.

Lagarde, however, noted that the euro zone also faces a risk of the “new mediocre’’, and described it as an economy marked by slow growth, low inflation and high unemployment.

But at the same time, she asserted that reluctant political leaders need to adopt more job-friendly labour market reforms, aggressive and innovative monetary policy and other structural reforms.

Oil prices tumbled to multi-year lows last week after the Organization of the Petroleum Exporting Countries decided to maintain its production quotas, rather than lowering its output target.

BA Plans Hub-And-Spoke Model with an Indian Carrier

British Airways is considering partnership with an Indian carrier for hub-and-spoke operations in line with its relationship with American Airlines depending on how the market develops over the next 2-3 years.

According to BA's Chief Executive Keith Williams, the British airliner will watch market developments over the next two-three years before finalizing the project.

He was asked whether BA was looking at tying up with an Indian carrier to launch hub-and-spoke operations from five cities to London Heathrow (LHR) like their arrangement with American Airlines.

In hub-and-spoke operation, an airline routes all of its traffic through one central hub or hubs.

On nine decades of BA operations to India, Williams said, "British Airways has been servicing this market for 90 years and we look forward to our association with India for another 90 years and more. ... This year we create another milestone in our history with India."

The first flight of then Imperial Airways (now BA) from London to Delhi had taken off on November 10, 1924, and had reached the Indian capital on March 17, 1925. It had taken four different planes and 20 stops en route to complete the journey.

Maruti Suzuki Sells 110,147 Cars in November

India’s leading car manufacturer, Maruti Suzuki sold 110,147 units in the month of November 2014, resulting in a 2.2% rise in shares to Rs 3,410 on BSE.

The company also reported a 19.5% year on year increase in its total sales. The car maker had sold 92,140 units in November 2013.

Domestic sales during the month stood at 100,024 units, up 17% from 85,510 units in November last year, Maruti Suzuki India said in a statement.

Exports in November 2014 stood at 10,123 vehicles, up 52.7% compared with 6,630 units in the same month last year.

Maruti Suzuki had reported a 1.1% decline in total sales in October at 103,973 units as against 105,087 units in the same month last year.

Indigo To Launch Kozhikode-Dubai Daily Flight

India based low cost airliner, IndiGo announced plans to start daily direct services from Kozhikode and Bengaluru to Dubai.

The Bengaluru-Dubai service will start on December 15 and the Kozhikode-Dubai service will begin on January 2, the airline said in a statement.

Neither destination is currently served by a low-cost option from Dubai, although Emirates flies three-times daily to Bengaluru. Both services will depart from Dubai International Terminal 1.

IndiGo will offer ten daily non-stop flights connecting Dubai to eight Indian cities with a weekly capacity of 12,600 seats following the launch of the two new services.

Aditya Ghosh, president, IndiGo, said its eight daily flights from Dubai to India are testimony to the good prospects for business and leisure traffic, as well as two-way flows of students and young working professionals.

India Nov Factory Output Fastest In 2 Yrs: HSBC

Asia’s third largest economy, India’s factory output rose at its fastest rate in nearly two years in November, with consumer goods leading the way, a survey says.

According to HSBC survey, India’s purchasing managers index (PMI) rose to 53.3 points from 51.6 in the previous month, the highest figure recorded since February 2013.

In the survey, which is seen as a harbinger of industrial expansion and economic health, a reading of more than 50 points suggests expansion while anything below indicates contraction.

"Manufacturing operating conditions in India improved for the thirteenth month in a row in November, supported by stronger growth of output and new work intakes," said HSBC in a report.

However, the bank cautioned that inflationary pressures had intensified in November after three months of easing.