MUMBAI : Continuous flow of foreign funds into the stock market, the growing strength of the Indian economy and the sudden weakness of the US dollar against other major currencies in the last two days helped the Indian reupee to strengthen against the green back to over 45-level on Monday. As a result of huge FII inflows, sensex too ralled and on Monday touched a 25 month high at 17,793.

    The partially convertible rupee hit a high at 44.94 to the dollar and ended at 44.96, an 18-month high, It gained 0.6%, or 28 paise from its Friday close at 45.23 Based on FII inflows and the future prospects of the economy, top bankers and analysts feel there is high chance that the Indian currency could strengthen further from these levels.

    So far this month, FIIs have pumped in nearly $4 billion into indian equities, which is the second highest monthly net flow ever, Sebi data showed. Despite a large number of domestic fund mangers feeling that most of the quality stocks are fully valued at the current levels, FII fund managers have been pouring money into India. Such dollar inflows helped the rupee to strengthen.

    “The Indian economy has been growing at a healthier rate relative to other economies and indian finacial market has been deep and liquid. This has resulted in robust inflow of foreign capital into the country. In turn, this has led to appreciation of the rupee,” said NS Kannan, ED&CFO, ICICI Bank, Top bankers now feel the trend to continue, helping the rupee to rise further from the sub-45 levels. Forex analysts also feel that over the last few monhs, rupee has emerged to be a stronger currency.

   A few days ago, the dollar was strengthening against other currencies but rupee did not weaken against the dollar, pointed out Jamal Mecklai, CEO. Meckial Financial services.

  “This shows that the rupee is a stronger currency now,” Meckial, a forex risk consultant, said However, he warned that 45 was just a number. a psychologically important level, and so the market should not be excited about it. “There is not much difference between (the RE-dollar rate of) 44.95 and 45.05.

    Based on the strength of the Indian currency, stocks of big exporters were hammered on the bourses Among the frontline stocks, Infosys Technologies ended 22% lower at RS 2,716 while TCS ended  1.7% off at Rs 811. However, the key for such exporters is to manage the forex risks, forex analysts said.

     NEW DELHI, MARCH 29: THE Finance Ministry has imposed definitive anti-dumping duty on imports of certain plastic processing or injection moulding machines from china.

    The Revenue Department has specified that the duty would be a percentage of the cost, insurance and freight (CIF) value of imports. The specified percentage ranges from 60 to 174 per cent, depending on the producer.

   However, blow moulding machines, vertical injection moulding machines, all electric injection moulding machine, multicolour/multimould machinery for making footwear and rotary injection moulding machine for making footwear are excluded from the levy.

  The anti-dumping duty will be in place five years from May 12, 2009, the date on which the provisional anti-dumping duty was imposed.

  The machines are used for processing plastic to make bumpers, water bottles, bottle caps, medicine bottles, household items and writing instruments.

  The Ministry’s decision followed a petition filed by L&T Demag Plastic Manchinery Ltd, Chennai.

  The Designated Authority in the Commerce Ministry had initiated the investigations in 2008.

    MEMBER -CARRIERS IN THE Transpacific Stabilisation Agreement (TSA) have concluded at their CEO meeting in Taipel that freight rates are still below sustainable levels and they would be unrelenting in pressing for more money from customers.

   Member lines -”K” Line, CSCL, Maersk Line, CMA CGM, MSC, COSCO NYK, Evergreen, OOCL, Hanjin, Yang Ming, Hapag-Lloyd, Zim and Hyundai -also predict that Asia-US freight market will grow by 6-8 per cent in 2010.

  As the TSA heads into months of contract talks, member lines “reiterated their support for the recommended guideline rate increases of $ 800 per FEU for cargo moving to the US West Coast and $1,000 per FEU for cargo moving to the US East and Gulf Coasts, as well as US interior points,” said the statement .

The increases would take effect from may 1 in most cases, said the TSA statement. ” Even if the scheduled increases are fully achieved, that will at best restore some, but not all freight rates to late 2008 levels, which were viewed,” at the time as barely compensatory,” it said.

TSA said that container lines in aggre gate lost, by various estimates, $15-20 billion in 2009 worldwide as the direct result of falling demand and a decline in rates, and liner demand and a decline in rates, and liner shipping industry retum on capital invested fell to 6.5 per cent.

TSA cited Drewry shipping Consult ants estimates of further losses of more than $7 billion during losses of more than $7 billion during 2010.

  In the transpacific, demand fell by more than 15 per cent in 2009, while rates fell by third to more than half, depending on commodity and routing . “Transpacific container lines took dramatic, emergency steps to cut costs and preserve basic service levels during a period of unprecedented turmoil,” said TSA Chairman and Hanjin CEO Mr Y.M. Kim.

  “In the process, freight rates fell to unsustainable levels that were locked into 12-month contracts, The key to reinvest ment and service expansion in the trade is a sustained increase in cargo demand. accompanied by return to a viable. compensatory rate structure.

  Despite sporadic reports of lines beginning to relum to profitability, Mr Kim said golbal carriers may see better retums in other trade lanes or in non-container operations like bulk shipping or tankers. “The transpacific liner trade still loses money,” he pointed out.

    FRENCH Shipping giant, the Marseilles-based CMA CGM , has announced a wide-ranging rate restoration programme covering mostof its major trade lanes.

   “In a continued effort to provide customers with the same reliable and efficient services to which they are accustomed, the CMA CGM Group has decided to apply a rate restoration programme,” said the company statement.

   Already in force from March 15 is the $160 per TEU and a $200 per FEU increase applied on all cargo from Vancouver to Asia.

    From April 1, a $100 per TEU and $200 per FEU increase, as well as on 40-foot high cube boxes, will be levied on cargo from Europe to India, pakistan and Sri  Lanka. There will also be an overweight surcharge (21 tons-including tare) of $ 150 per TEU.

    Also from April 1, ther will be a $ 250 increase per TEU on all types of cargo from Europe to the indian Ocean Islands -La Reunion, Mauritius, Madagascar, Mayotte, Seychelles per TEU on cargo from all origins to the Indian Ocean IsIands-La Reunion, Mauritius, Madagascar Mayotte, seychelles and comoros. Also from April1, there will be :

* A $ 250 per TEU reefer increase from the East Coast of South America to all destinations, said the company.

*  A $ 150 per TEU and $ 250 per FEU increases on all types of cargo from the US East, Gulf and West Coasts to the west Mediterranean, east Mediterranean, Adriatic, Black Sea and North Africa.

* A $ 200 per TEU and $ 300 per FEU increases on all cargo from the US East, Gulf and West Coasts to north Europe, he Baltic, Scandinavia, the UK and Ireland.

* A $ 200 per TEU and $ 300 per FEU increases on all cargo from north Europe to the US East and Gulf Coasts.

* A $ 150 per TEU and a $ 250 per FEU increase on all cargo from Halifax to cuba, Europe, Asia Australia and New Zealand.

* A $ 150 per TEU and a $250 per FEU in crease on all cargo from Halifax to all Caribbean and Latin American ports.

* A $ 100 per TEU increase for dry and reefer cargo and a $ 200 per FEU increase for dry, high cube and reefer cargo from New York, Savannah and Houston to all caribbean and Latin American Ports.

    NEW DELHI, MARCH 29: THE Chief Statistician of India Mr Pronab Sen, has cautioned against any firm monetary action to rein in inflation as it may cripple demand and choke higher growth.

   In fact, the Reserve Bank of India (RBI) is cautious that its measures do not discourage demand and hence is only sending ’signals’ to cool down the runaway inflation which is already nearing the 10 per cent mark , Mr Sen opined. “RBI needs to be cautious and it has been cautious : what it is doing now is just signalling and not compressing demand,” he explained.

   The remark assumes importance amid speculation that RBI may suck out more money supply and make the cost of borrowing dearer in its April 20 monetary policy to control inflation.

   The RBI Governor, Dr D. Subbarao, had recently said. that the apex bank would continue its exit from the monetary stimulus to check high inflation and ensure sustainable economic growth. RBI raised its key short-term rates by 25 basis points recently to control inflation.

   Mr Sen admitted that it was a matter of concern that non-agriculture inflation was picking up and had crossed the 7-per cent mark. He fore saw overall inflation crossing 10 per cent in March from 9.89 per cent in February.

  However, at this point RBI should be careful as the final figure for aggregate demand in the economy was yet to come up, Mr Sen said. The aggregate demand for the entire fiscal would be known only by May-end when the GDP figure for 2009-10 would be released.

  The economic growth in the fourth quarter had to be more than 8 per cent if the advance estimates made by the central Statistical Organisation of 7.2 per cent for the entire fiscal is to be achieved.

      GENEVA, MARCH 29 WORLD trade is expected to grow by 9.5 per cent in 2010. after the economic downturn in 2009, the head of the world Trade Organisation (WTO), Mr pascal Lamy, said.

     The developing countries trade is poised to grow by 11 per cent and industrialised countries’ trade by 7.5 per cent, he elaborated.

   LONDON, MARCH 29: GLOBAL union federation, ITF, and international ship managers’ association Intermanager, have signed a memorandum of understanding (MoU) to work together in areas such as maritime salfety, training and prevention of the creiminalisation of seafarers.

   It was signed by Inter Manager secre tary -General, Mr Guy Morel, and ITF Seafarers’ Section Secretary, Mr Jon whitlow.

 The MoU identifies a significant over lap in the goals and objectives of the two  organisations in the field of shipping’s human element. It also recognises the potential benefits of greater cooperation in areas such as:

  *Criminalisation and the fair treatment of seafarers.

 * The promotion of social communication onboard ships.

 * Meeting the aspirations of young seafarers.

 * Promotion of a safety culture onboard ships.

 * Ensuring that monning agencies meet the requirements of the Maritime Labour convention.

* Improving the image and reality of the industry.

 * Simplification of the documentation required to be carried by ships.

 * Crew/officer training, attraction and retention .

* Improving accommodation stan dards.

 The last two years have seen a number of occasions when organisations across the shipping industry have come together to speak out on issues such as piracy and the unfair criminalisation of seafarers. The ITF had earlier signed a similar MoU with Intertanko.

   HYDERABAD, MAR 29: Shipping companies are expected to report higher earnings for the last quarter of the current fiscal, with the global freight market remaining stable in the last three months. In the last three quarters, the freight market was damp due to the recession, with ship owners reporting subdued earnings.

   “I think the market will remain steady in the coming quarters with no sharp increases or falls. Of coures, much will depend on Chinese trade and supply of new ships in ther market. We expect an upturn from 2011 onwards,” Mr V. Ashok, Director and CFO of Essar shipping ports and Logistics Ltd, said.

   In the third quarter, most shipping companies reported a dip in profits, with earnings frofits, with earnings from crudeand product carriers slipping by almost 70 pc For example, Great Eastern Shipping reported a 67 pc drop in net profit at Rs 94.3 crore, while Shipping Corporation recorded a 53 pc slide in profits at Rs 87.44 crore. ” A pick up in sport rates in this quarter may help ship owners recover said mr Ahok.

    The average  daily earn ings to a VLCC fell from $11,209 in the first quarter of the current fiscal to $4,514 in the second quareter , picking up marginally in the third quarter to reach $ 17.567 It  gained some strong poinvts in January when  the VLCC charter rate shot up to $ 49,108 a day, while in the next month, it dropped to $ 25,908. For almost the whole of March, the rate was above $ 30,000 a day, indicating a stable market.

   On the dry side, the Baltic Dry Index (BDI), a key indicator of the cost of moving commodities on certain major routes, hovered be twenn 3,000 and 3,500 in the last three months. Ana lysts belive that the effect of China’s credit tightening coupled with supply of new vessels in the market, may not see a singnificant surres coming  quarters.

   However, India’s in creased import of fertilisers, higher steel production outside of china (mostly Europe) and North America’s incressed movement of thermal cost ald de-icing salt may keep the marg steady, especially in the handysize and handymax segments.

      MUMBAI, MAR 29 29: The jawaharlal Nehru port Trust (JNPort) has received the final nod from the government to set up a port-based special economic zone (SEZ) a senior official said.

     “We have received final approval from the government to set up a port -based SEZ in 400 hectares of land in the port area. The port will work as a developer for the SEZ,” JNPT deputy chairman NN Kumar said. The port author ity has appointed a consultant to formulate a master plan for the development of the SEZ, which should have a synergy with port operations.

   KOCHI, MARCH 28:EXPORTS  of coir products have crossed the target set for 2009-10 and may end up some where between Rs 730-40 crore, the Coir Board said.

  Aided by a four-fold increase in exports of curled coir in February, shipments during April February 2009-10 were estimated at around 249,529 tonnes valued at Rs 707.44 crore, as against 174,240 tonnes valued at Rs 578.76 crore during the same period of 2008-09.

   In February alone, exports shot up by 85 per cent and value by 24 per cent as compared to the corresponding period of 2008-09.

    The export growth was spurred by strong demand from china, which has been imporing enormous volumes of curled coir and fibre the Coir Board explained.

    Exports of Curled coir in February alone rose by an unprecedented 1,677 per cent in volume and 1,458 per cent in value.

   Also, coir fibre exports during the same month went up by 452 per cent in volume terms and 375 per cent in value terms.

   While market share of traditional handloom products like coir mats, rugs and carpets is declining, demand for machine manufactured PVC tufted mats and coir raw materials is rising, coir Board sources revealed.

   Low quality coir fibre is mainly exported to china and Korea.