Congress have won vote of confidence

• The congress government led by prime minister Dr. Manmohan singh have won the vote of confidence motion.
• The nuclear deal will open a new era in Indian power sector.
• The most obvious is nuclear power. France and Russia have had nuclear cooperation agreements with India ready for months, waiting only for the green light from the Nuclear Suppliers’ Group. General Electric and Westinghouse are reported to have $14 billion worth of agreements in the pipeline for setting up power plants.
• Within a year of the formalities being completed, agreements for setting up 50,000 MW of nuclear power plants should be in place. Also, the completion of the agreement and anticipation of vastly increased FDI would renew the confidence of Indian and foreign investors and raise share prices.
• In the longer run, India has no option but to tap FDI for the power sector. India’s current power generating capacity of around 180,000 MW is short of its needs by at least 30,000 MW. If it wishes to maintain a long term growth rate of eight per cent, then even after allowing for increases in energy efficiency, it will have to double its generating capacity every ten years. By 2028, therefore, it will have to add around 630,000 MW of power generating capacity, of which all but around 50,000 MW would have to be thermal-based.

Google reports 35% rise in net profit

• Google Inc reported a weaker-than-expected 35 per cent rise in net profit as the company blamed lower returns from managing its huge cash pile rather than softening sales of online advertising.
• Shares of the company tumbled 8 per cent to below $500, as Wall Street has come to count on Google to deliver revenue and earnings surprises over and above expectations each quarter.
• The disappointing profit came as Google said second-quarter online ad revenue held up well across sectors and world regions despite a weaker global economy that has tripped up rivals. Officials pointed to problems managing its cash - now totaling $12.7 billion - in the face of volatile interest rates, the cash drain of recent acquisitions and higher costs to hedge foreign currency risk as operations expand overseas. Google shares fell as much as 10 per cent from a Nasdaq close of $533.44.

TCS Q1

Country’s biggest software exporter reported a growth rate of 7 per cent in its consolidated net profit to touch Rs 1291 crore in the first quarter ended June 30. The company which narrowly missed the forecasts saw a 24 per cent revenue growth to touch Rs 6411 crore. Analysts had estimated Rs 6500 crore.
The company’s revenue grew 6 per cent vis-a-vis the earlier quarter. Shares of TCS gained 5.9 per cent in the last quarter, compared with a 14 per cent decline in the Bombay Stock Exchange’s benchmark index and Infosys’ 21 percent.