The Mint Report for 10 August 2010

The Mint Report for 10 August 2010

The MCX Stock Exchange, which got a breather from the Bombay high court on Tuesday. The court gave market regulator Sebi until 30 September to decide on an application from MCX on starting trade in equities. But it also gave MCX ten days to pass a board regulation making it clear it would not hike its holdings beyond specified limits. MCX had gone to the high court claiming Sebi was not giving it the permissions it needed even though it had complied with regulations. At present MCX only deals trades in currency derivatives.

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India and the United States are getting closer to an agreement on social security payments. The two sides have held a series of meetings over the last month to pave the way for a deal. If a so-called totalisation agreement comes into effect, some expat workers from both countries will get refunds and benefits for social security payments they make out of their income. That’s going to be a boon for India’s I T sector. The industry’s main lobby, Nasscom estimates India’s IT industry and professionals pay a billion dollars in American social security contributions every year. India and the U S are hoping to sign the totalisation agreement in when president Obama visits India in November.

Tata Motors, quarterly numbers have shot past expectations. Consolidated net profit surged to Rs1,999 crore from a loss of Rs329 crore in last year’s first quarter. Total income was at Rs27,056 crore, an increase of 64%. The unexpected windfall was partly driven by subsidiary Jaguar Land Rover, which did brisk business, accounting for two-thirds of total sales. And Tata Motors CEO Carl-Peter Forster said the company would have done even better if it weren’t for a shortage of engines.

Tata Motors stock shot up at full speed on Tuesday. Shares of the company went up 4.17% to reach 957.30.