Are you a software professional...       then you have to know the current Software industry position........in India.....

THE STRENGTHENING of rupee, imminent recession in US, sub prime mortgagee crisis in US and its worldwide coupling effect - it seems that everything is going against Indian software industry. On one side, due to slowdown in US economy and effect of sub prime crisis in US as well as in Europe, search of new clients and increasing the contracted rates are becoming tough for software companies and on the other side, whatever income realization these companies are getting, the strong rupee has eaten it by more than 10 per cent.

Indian software companies are taking tough decisions in tough business environment for survival in this difficult time. The decisions are ranging from mild wage cut to as stiff as axing from job. On January 30, India's largest software company Tata Consultancy Company (TCS) has announced to cut the variable component of its employee and on an average, the cut will affect the employee's salary by anywhere between 1.5 – two per cent less this month and onwards. Though 1.5 – two per cent cut does not look very huge in the industry, which is suffering, but getting less salary is certainly pinching the employee. But it appears that the company may not have any other choice keeping in view that they have maintained the same level of salary despite appreciation of rupee since last one year. It is also correct that if a company's stake holder and shareholder are facing lower returns (in the form of depreciated value of the company share), then some brunt should also be borne by the employee.

It is not that only employees of Indian software companies are in tough water, yesterday news has come that International Business Machines (IBM - the multinational software giant) is also trimming its payroll list. An estimated 700 fresher employees have been given the 'pink slip' (an American practice of retrenching people when notice of termination is given on a pink paper and wrapped in an envelope). Most of such employees are Entry Level Trainee Programmers (ELTPs). IBM is claiming that the layoff is based on the performance of the employee but sudden retrenchment, it seems, is an after effect of the poor performance of its India operations. It may be learnt that IBM does not have its own developed software as companies like TCS or Infosys do. Rather IBM provides complete software (for the software of TCS or Infosys or I-flex companies etc) solution package and it is something like contract services. So naturally, if the software companies will be affected then IBM performance also will be affected.

The hiring spree of the software companies is also at low ebb. It may be evident by the less number of recruitment advertisements appearing in the newspapers. Already so many software companies are suffering due to increasing number of attrition.

Though big companies are managing their profit during the year by hedging their overseas income through forward contract, the real acid test is for small and medium-sized companies who do not have a big established full-fledged treasury department. The small companies are really facing the worst time, as going for search of new customers and new currency (Euro) in Europe would be a tough task owing to wide spread sub prime crisis effect.

The share prices of all Indian software companies are at the lowest level in the near past. This shows that even Dalal Street is also not coming to rescue with software companies in tough times. Once a blue-eyed boy of Dalal Street, Infosys is showing lowered strength in each session of trading at the bourses. Most of the software companies are trading at year-low prices. 

Reserve bank of India Governor Dr. Yaga Venugopal Reddy had reviewed the market changes in the last few days and announced interest rates will be unchanged that be rewarded as “Standstill policy”. Cash ratio and CRR repo and reverse repo rates and bank rates will be changed in the upcoming days. Reserve repo at 6% and CRR at 7.5 % and the inflation target for 07-08 also remain at 4 to 4.5 % levels and 3% in medium terms. For maintaining the price stability RBI keep it self away from hawkish stance and second quarter credit policy unveiled on Tuesday. GDP forecast has reached at 8.5%. The repurchase rate was held at 7.75 percent, the Reserve Bank of India said in a statement in Mumbai today. The Reserve Bank of India left its reverse repurchase rate, or the overnight borrowing rate, at 6 percent and the cash reserve ratio, or the proportion of deposits banks must hold as reserves, at 7.5 percent. Reddy makes the decision himself after consulting with senior central bank officials.

NEW DELHI (Reuters) - Finance Minister Palaniappan Chidambaram said on Tuesday the Reserve Bank of India’s decision to leave all interest rates unchanged at a review marked a "standstill" policy that could be calibrated later to meet global developments.

Chidambaram said the government would discuss with the RBI further policy actions that could be taken at the next review in April.

"Developments in global financial markets in the context of the subprime crisis would warrant more intensified monitoring and swift responses with all available instruments to preserve and maintain macroeconomic and financial stability," the RBI official statement .

Downfall in the interest rates in US makes the Indian market to complicate the monetary and currency management by Indian rupees and exports rise. So there are some restrictions are necessary in the the context of the management of volatile and large movements in capital flow.

Apart from monitoring forex flows , market sources not ruled out forex flows and reversal on global sentiment. RBI governor warned banks for not lowering interest rates despite of easy easy liquidity conditions and the fact that credit has moderated.

“Usually most banks see hardening of rates in the last quarter (Jan-Mach) of the year, but the fact that it has not happened this year means that banks have taken into account the liquidity positions. RBI’s response is a measured one given the uncertainties in the global. It has to take note of inflation but at the same time it also has to keep liquidity in mind. Most banks will watch their liquidity positions in the February-March timeframe and go in for interest rate re-structuring only in the next quarter,” said Chanda Kochhar, Joint Managing Director, ICICI Bank.

The rupee stood at 39.39/40 per dollar, holding steady after the Indian central bank's decision, while the yield on the 10-year benchmark bond rose 2 basis points to 7.52 per cent.

Given the RBI’s decision to leave the rates untouched on Tuesday, the interest rate differential between India and the United States widened to 4.25 percentage points, its widest in three years, after the Fed slashed the fed funds rate last week. The Fed is also expected to make a further cut in rates on Wednesday.

Long awaited world Cheapest car Tata motors cars that was said by “Lakhtakia” (Before formally announcement) launched on 10-jan-2008. Tata announced in Auto Expo -2008 that was held in “Pragati Madan” New delhi. Tata told that they had kept its promise as usual that they had given 5 years ago. Although market had changed dramatically and the cost of other thing as compared rise up drastically. Tata Motors ltd claimed that its be cheapest car in the world and its cost be 1,00,000 rupees (INR Indian currency ) or even $2,500 .

Tata motors chief announced Its name “Nano” in Auto Expo 2008 and take first test ride and make a new history in the auto world specially for India its be a matter of proud . For the world where new costly and luxuries cars come into market. Tata make a new image in the world history forever .

Nano is basically 4-Seater car which have 625 CC engine and will be available for sale later this year. 1,00,000 is basically its dealer price and the cost and margins would be raise its price for customer. Its cost be half of the existing cheapest car a 25-year old model from rival Maruti Suzuki. The compact but curvy Nano stands in sharp contrast to the luxury Jaguar and Land Rover brands that Tata is negotiating to acquire from Ford Motor Co.( Reuters Source ).

Ratan Tata proudly announced in the pavilion which was full of people that "Let me assure you and our critics the car we have designed will meet all safety norms and all foreign environmental criteria," Chairman Ratan Tata said as he proudly unveiled what had been dubbed the "People's Car" at the Auto Expo in New Delhi. During launching Tata takes its first ride and feel good and after that Ratan Tata told that he had made a promise 5 year ago that he would made a car that would be made only for Indian people and its price be challenge that no one can catch it. He told that Nano be affordable alternative for those families who living its life with motorbikes and scooters .

The media told its be “people car” or “lakhtakia “ since a long time and its be revolution . Already Germany's Volkswagen, leading Indian motorbike maker Bajaj Auto and France's Renault and Ford among others have said they planning or mulling new cheap cars for India where small autos comprise two-thirds of annual passenger vehicle sales of one million in the country of 1.1 billion. Moreover best of luck Tata Motors for making such dream true .

Biocon has increased its focus from statins to branded biotech formulations and contract research services. With branded products like Insugen, BIOMAb gaining size and in anticipation of outlicensing deals in its insulin and MAb programmes, we expect its Biopharma division to trade at 25xFY09E earnings. We see tremendous value in the CRO business and expect it to trade atleast 35xFY09E earnings on account of comparatively higher margins and manifold growth ahead. We have used SOTP valuation and have arrived at a target price of 758. We re-initiate coverage on the stock with a ‘BUY’ recommendationInvestment Rationale Risk Adjusted Growth Strategy Biocon is the only company which has made remarkable progress in the Indian Biotech industry with Oncology and Diabetes as its focus areas. Over the years, the company has entered into strategic alliances, bought out IPR’s in the diabetic space.With a blackened laboratory in place, these initiatives have resulted in minimizing costs and speedier commercialisation. Its R&D subsidiaries have further consolidated their standing having partnered with global biotech majors in areas of complex research and development.Biopharma: To Provide Long Term Stability Biocon was synonymous with ‘Statins’. The emphasis on this segment is reducing with concurrent focus on Biopharma business which includes insulin,immunosuppressants, monoclonal antibodies (MAb’s) and other products. We expect statins contribution to lower down in the near term with higher growth in the
insulin, immunosuppressant segments. BIOMAb-EGFR, its first anticancer antibody is expected to grow more than five fold in size to cross a billion by FY10e. Positive developments on novel insulin delivery mechanisms and monoclonal antibodies
would attract a huge premium by way of outlicensing deals by FY10e. As a part of its strategy of introducing biopharma products at a competitive price in key markets like US & EU, it is scouting for acquisitions in the distribution space. We expect Biopharma division to grow at 22% CAGR over FY07-09E.Contract research services: Poised For Growth...With significant investments underway in Syngene and operations being ramped up in Clinigene, we estimate 43% revenue growth and 40% earnings growth over FY07-
09e. We estimate revenue contribution to increase from ~14% in FY07 to 20% in FY09E and PAT contribution to increase from ~26% to 35% in FY09E. We also do not rule out a possible deal announcement post Bayer’s recent visit.

Reliance industry now very happy after capturing the market on various goods like Telecom, retail , capital and etc , since that reason share prices of various reliance companies like Reliance industries , Reliance petrol , Reliance natural Resources , Reliance Energy , Reliance Communication , Reliance Capital dominating stock market flow and always one of them be in top ten gainers in either BSE or even NSE and people always curious to know what hike Reliance share achieve either be Reliance petrol or other .

Such flows affect that total capital of Mukesh Ambani and make him world richest people because he has $63.2 billion. An independent agency survey assuming his total wealth is $63.2 billion and reason behind that booming of the Stock market. The official sources denied that report and announced that total wealth of Mukesh Ambani now became $50 billion and he is not world richest person .World famous business magazine Forbes listed Mukesh Ambani world multi-billionaire after a survey and give him 14th position with the total wealth of $20.1 Billion .He was behind the world famous IT and software giant who have wealth near about $56 billion . The breakneck rise in benchmark Sensex index, which rocketed to 20,000 points on 29-10-2007, after gaining nearly 4,000 points in six weeks, meant 49-year-old Ambani was now worth 63.2 billion.

"They are completely wrong. They have done double calculations," Reliance spokesman Tushar Pania said, explaining that Ambani, 49, does not have a direct share in Reliance Petroleum.

Ambani's wealth was calculated on the strength of his holdings in Reliance Industries and group companies Reliance Petroleum and Reliance Industrial Infrastructure Limited.