31 July 2008

GENERAL
 
1)The Government on Wednesday ruled out extending the last date for filing of income tax returns by individuals beyond July 31.  “There is no proposal to extend the last date for filing returns by individual tax payers beyond July 31,” a Senior Finance Ministry official said.

Indian Express

CORPORATE / INDUSTRY
 
2)UTILITY and tractor major Mahindra & Mahindra on Wednesday signalled its entry into the two-wheeler segment by agreeing to buy the assets of Kinetic Motor Company for Rs 110 crore.  M&M will buy the assets through a new company, Mahindra Kinetic Scooters and Motor- cycles, that would own the assets of the Pune-based Kinetic Motor.

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3)INDIAN pharma firm Lupin has acquired the German generics drug maker, Hormosan, for an undisclosed sum.  The deal will help Lupin access Europe’s biggest generic market.  The generic drug market in Germany is valued at $14 billion while the country’s entire pharma market is worth $45 billion.

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4)PUNJAB Tractors, a Mahindra & Mahindra subsidiary, is merging with M&M in a move aimed at reviving profits and reducing costs.  M&M had bought 63.33% equity stake in Punjab Tractors in July last year. M&M said it would issue shareholders one Mahindra share for every three Punjab Tractor shares held.

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5)Fertiliser companies in the country are planning to invest around $5 billion(Rs 21,000 crore) in overseas joint ventures over the next three years.  These companies are in negotiations for 19 such ventures, said government officials.  These joint ventures are aimed at sourcing nitrogenous, phosphatic fertilisers and other raw materials.

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MONEY & BANKING

6)The rupee gained against the dollar on Wednesday tracking the up-swing in the domestic stock market and the ease in oil prices.  The domestic currency opened at 42.52/53 and touched an intra-day low of 42.58/59.  It then appreciated to finally end at 42.36/37, against the previous close at 42.64/65.

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7)SEVERAL banks have increased their lending rates in response to the rate hikes by the Reserve Bank of India on Tuesday.  State-owned Punjab National Bank has raised rates by one percentage point while in the private sector Axis Bank has increased its benchmark rate by half a percentage point.  Among foreign banks, Standard Chartered Bank and ABN Amro Bank are likely to announce an increase in their lending rates on Thursday.  The country’s largest housing finance company HDFC will review its lending rates in a couple of days. “We will make assessment of the impact on our cost of funds and take a decision on lending rates,” said an ICICI Bank spokesperson.

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INSURANCE

8)PRIVATE non-life insurance companies have increased their share of motor insurance, following introduction of free pricing.  Private insurers’ share of premium from comprehensive insurance of vehicles is 50% for 2007-08 against 41% a year ago.

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9)LIC has launched an insurance policy designed exclusively for women called Jeevan Bharati-I.  The policy is essentially a money back policy with a term of 15 or 20 years.  Besides critical illness and accident benefit riders, it offers a congenital-disability benefit rider, which ensures the payment of 50 per cent of the rider’s sum assured to the women policy holder, in the event that she gives birth to a child with congenital disabilities.

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MARKETS

10)BULLS shrugged off the impact of the knock-out punch delivered on Tuesday by RBI, bouncing back strongly on the back of falling oil prices and firm global markets.  Concerns relating to the local economy, mainly inflation and rising interest rates, receded to the background as the 30-share Sensex ended Wednesday at 14,287, a gain of 495.67 points or 3.6% while the NSE Nifty rose 124 points or 3% to 4314.  Wednesday’s rebound helped the market recoup a significant part of Tuesday’s losses caused by the steep hike in the benchmark short-term rate by 50 basis point.  The Sensex had fallen 558 points and the Nifty by 142 points on Tuesday.

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11)Construction and engineering company, Punj Lloyd jumped 11.88 per cent to close at Rs 271.20 after reporting an 88 per cent y-o-y increase in consolidated net profit to Rs 111.9 crore on an 89 per cent y-o-y growth in total income to Rs 2,658.2 crore in Q1 FY09.

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12)Anil Ambani group company Reliance Power rose 5.77 per cent to close at Rs 163.05 after the National Stock Exchange announced in a circular that Reliance Power would be replacing Dr Reddy’s Laboratories in the S&P CNX Nifty index with effect from September 10.

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IPO
 
13)Sebi has finalised the guidelines that would allow a retail investor investing in an initial public offering, to pay only to the extent of shares allotted to them and not pay 100% upfront advance for shares applied as in the current norm.

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14)Power sector IPOs would seem to be the latest buzz in government corridors following the trust vote. The power ministry is planning to list at least three central power companies over the next few months. While hydel major NHPC will be the first to hit the market, others like Damodar Valley Corporation and North Eastern Electric Power Corporation would also come with their public issues soon.

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MUTUAL FUNDS
 
15)Private sector life insurer Aviva India on Wednesday said it is exploring possibility of entering into asset management business.  “As part of our expansion strategy in Asia Pacific and keeping in mind the opportunity India presents, we would like to enter into asset management business as soon as possible,” Aviva India managing director Bert Paterson said.

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16)Mutual funds are now changing tack to attract investors to invest in their products after a bearish sentiment in equity markets led to a spate of new fund offerings(NFOs) that managed to collect meagre  amounts of money from the investing public.  A spate of NFOs – those of Morgan Stanley, HSBC and Mirae that hit the market after the market meltdown in January – together managed to mop up only about Rs 250 crore.  Funds are now offering protection on the downside for investors. Birla Sun Life’s equity-linked fixed maturity plan(FMP) is positioned as giving returns between an equity fund and an FMP. The fund will invest in debt securities with coupon linked to the Nifty and will offer the enhanced upside of the equity market as well as protection if the equity market goes down.

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COMMODITIES
 
17)Gold fell to a one-month low as the dollar extended its rally, eroding demand for the precious metal as an alternative investment. Silver also gained.  Gold futures for December delivery fell $14.40 or 1.5 per cent, to $912 an ounce at 9:15 a.m on the Comex division of the New York Mercantile Exchange.

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18)A sustained fall in prices of four agriculture commodities-futures trade in which were suspended in May-could lead to revoking of the suspension. In May, the government suspended futures trade in potato, refined soyaoil, chana, and rubber for a period of four months, to check rising prices.

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19)Pepper futures market continued their upward swing on Wednesday also on tight supply position.  There were no arrivals even when there was good demand from the internal market.  All the contracts moved up. Aug-Sep were up by Rs 145 to Rs 169 while Nov-Jan contracts went up by Rs 104 to Rs 132 a quintal from the prices of Tuesday.  Spot pri- ces moved up by Rs 100 a quintal to close at Rs 13,800(un-garbled) and Rs 14,400 (MG 1) on Wednesday.

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20)Gold prices tumbled by Rs 200 per 10 gm on the bullion market in New Delhi today on heavy selling by stockists sparked by strong domestic bourses amid weak global trend after crude oil declined.  In the domestic market the precious metal fell after the Bombay Stock Exchange surged by 495.67 points to 14,287.21 as market participants indulged in covering up their short positions ahead of expiry of July contract in derivative segment.  Standard gold and ornaments fell by Rs 200 at Rs 12,800 and Rs 12,650 per 10 grams respectively. Sovereign fell by Rs 25 at Rs 10,625 per piece of eight grams.

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REAL ESTATE
 
21)In line with analyst expectations, property developers, such as Unitech, Puravankara Projects and IVRCL Infrastructure, today registered an average net profit growth of 23 per cent. Unitech, the country’s largest listed developer, posted a 15.7 per cent growth in net profit for the first quarter ended June 20,2008, beating analyst expectations. The growth was mainly due to higher realisation in the mid-income housing segment(apartments in the range of Rs 40-45 lakh). The company posted a net profit of Rs 423.31 crore as compared with Rs 365.67 crore in the corresponding quarter last year.

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INFORMATION TECHNOLOGY

22)SATYAM Computer Services is betting big on the high-end engineering services segment.  The firm plans to ride on the new opportunities to sustain growth in an uncertain global business environment. As part of this effort, it has spent $1 million to develop talent-pool for the segment. It will look at raising its headcount from 4,400 to 5,000 by this fiscal end. The firm expects revenues from this segment to rise from 8% to over 10% in future.

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23)WIPRO Technologies’ research team is developing technology to help provide cheaper, high-speed broadband internet access and has tied  up with manufacturers to make the product overseas for sale in India and the global market.

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24)INFOSYS Technologies has bought nearly 10 acres near Bangalore’s new international airport, marking its biggest land deal in the city in three years as top technology companies struggle to win government approvals to acquire land in the country’s technology capital.

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25)Mastek Ltd expects the US to account for almost half of the firm’s revenues in the next three years as the credit crunch there does not have a direct impact on the city based company’s chosen areas of business.  The company is keen to have a 50:50 mix going forward, where in 50 per cent revenues would be from US with the remaining coming from other geographies, the company Chairman and Group CEO, Mr Sudhakar Ram, said on the sidelines of a news conference.

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INTERNATIONAL
 
26)Crude oil fell, approaching a 12-week low, before an energy department report that’s forecast to show fuel supplies increased. The department may say that gasoline supplies rose for a fifth week, according to a Bloomberg News survey of analysts.  Consumption of the motor fuel has declined for 14 weeks as high pump prices have caused peo- ple to cut back on their driving, MasterCard Inc reported on Tuesday. Crude oil for September delivery fell 38 cent, or 0.3%, to $121.81 a barrel at 9:13 a.m. on the New York Mercantile Exchange.

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FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd               www.karvy.com
                                                 www.khojhyderabad.com
                                                 www.indiacorporateadvisor.com
                                                 www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd       www.KARVYGlobal.com
KARVY Realty (India) Limited    www.karvyrealty.com
Economic Times                       www.economictimes.com
The Financial Express              www.financialexpress.com
Business Line                          www.businessline.in
Business Standard                   www.business-standard.com
The Times of India                  www.timesofindia.com
The Hindu                               www.hindu.com
Deccan Chronicle                   www.deccan.com
The New Indian Express         www.newindpress.com

NIFTY – Techinical Chart

Here is Techinical chart of S&P CNX NIFTY. Soptted & shared by Nihar.

S&P CNX NIFTY Technical Chart

Thanks Nihar.

30 July 2008

GENERAL

1)Ahead of the crucial IAEA meet this week to discuss India-specific safeguards agreement, Prime Minister Manmohan singh has written separate letters to Chinese President Hu Jintao and Premier Wen Jiabao seeking their support for the nuclear deal.

Indian Express
 
CORPORATE / INDUSTRY

2)Indian companies are gearing up to measure their carbon footprints and to set targets for reduction in emissions. Industrial houses like Tata Group and ITC and JSW Steel, the country’s third biggest producer of steel, have mapped their carbon emissions and set reduction targets, says a study.

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3)EVEN as the two-wheeler industry is expected to post a flat growth in sales this year, TVS Motor is hopeful of bucking the trend with a 15% growth in topline clocked in the first quarter. This is to be achieved more by volume growth in new vehicles than any price revision.

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MONEY & BANKING
 
4)Life for the EMI-hit borrower just got tougher. Sharpening its ongoing attack on inflation, the Reserve Bank of India(RBI) on Tuesday hiked the cash reserve ratio(CRR)- the proportion of deposits a bank must maintain with the central bank – by 25 basis points. This is expected to suck Rs 9,000 crore out of the system. RBI also hiked the repo rate-the rate at which it lends short-term money to banks-by a steep 50 basis points. This will leave banks with very little option but to raise lending rates further. CRR now stands at a hefty 9%, with effect from the fortnight beginning August 30, 2008, the highest since 1999. The repo rate will also stand at 9%. The reverse repo rate and the bank rate, however, remain unchanged.

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5)The rupee depreciated by 10 paise against the dollar on Tuesday, mainly due to losses in the stock market. The domestic currency opened weaker at 42.67/68 and closed at 42.64/65 against the previous close of 42.55/56. During the day, the rupee moved in 25 paise range.

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6)Despite a sharp increase in provisions and contingencies, Bank of Baroda’s first quarter net profit rose 12.1 per cent as fee-based  earnings grew substantially. Net profit rose to Rs 370.86 crore from Rs 330.84 crore in the same year ago quarter.

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PENSION

7)THE Central Board of Trustees(CBT) of the Employees’ Provident Fund on Tuesday chose four asset management companies(AMCs) to manage fresh additions to the EPF corpus. Around 4.5 crore workers are expected to gain from the asset management expertise of these firms, which will work on the retirement savings from September 1. Apart from HSBC AMC, ICICI Prudential AMC and SBI – which were already shortlisted – Reliance Capital AMC was a surprise choice.

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MARKETS
 
8)After tracking weak global cues, Indian bourses slumped on Tuesday after an overdose of RBI’s harsh liquidity prescription. Both rate hikes were way above market expectations. Worries of slowing GDP growth and an erosion in corporate profits led to a major sell-off,dealers said. The 30-share Sensex of the Bombay Stock Exchange(BSE) pared 557.57 points, or 3.89%, to close the day at 13,791.54 points. The wider S&P CNX Nifty of the National Stock Exchange(NSE) closed the day at 4,189.85 points, posting a loss of 142.25 points, or 3.28%.

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9)The Reserve Bank of India(RBI) decision to hike the Cash Reserve Ratio (CRR) and repo rate by 25 basis points and 50 basis points respectively, impacted the BSE Bankex the most among all sectoral indices, after it registered a loss of 562.22 points or was down 8.31% to close the day at 6,199.60 points. The toll on the Bankex was much higher, as it three key constituents ICICI Bank, HDFC Bank, and State Bank of India(SBI), who together command more than 71% weightage in the index were the major losers.

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10)PNB GILTS was locked in the 20 per cent upper circuit and closed at Rs 27.45 after Punjab National Bank announced recently that it has initiated the disinvestment process for its entire stake in PNB Gilts. PNB Gilts, a 74.07 per cent subsidiary of the state-run bank Punjab National Bank, is a primary market dealer.

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11)SELAN Exploration Technology galloped 17.51 per cent to close at Rs 310.35 as the company’s net profit jumped about five times in the quarter ended June 2008. The net profits zoomed 478.57 per cent y-o-y to Rs 17.82 crore and the net sales increased 364.33 per cent y-o-y to Rs 35.80 crore in Q1 FY09.

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MUTUAL FUNDS
 
12)JP Morgan Asset Management India Pvt Ltd on Tuesday announced the launch of its JP Morgan India Alpha Fund. The fund will open for subscription on July 31 and close on August 29. The main objective of the scheme is to generate absolute returns in all sorts of markets, said Mr Harshad Patwardhan, Investment Manager – Equity at JP Morgan Asset Management India Pvt Ltd.

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CORPORATE SCORE
 
13)RIDING on higher motorcycle sales and reaping the benefits of shifting bulk production to tax-free zone Haridwar, Hero Honda Motors(HHML), the world’s largest two-wheeler manufacturer by sales, posted a better-than-expected 44% increase in net profit in the first quarter. The company totted up a profit after tax of Rs 272.87 crore for the quarter ended June 2008, up from Rs 189.84 crore in the corresponding period last year.
                                  
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14)GAIL net profit in the first quarter of current fiscal jumped by 31% at Rs 897 crore from Rs 685 crore in the corresponding quarter previous year on higher trading and tranportation of natural gas. The company’s better performance is despite an outgo of Rs 475 crore on account of oil subsidy.
                                  
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15)Private carrier Jet Airways India Ltd has posted a net profit increase of 343% at Rs 143.40 crore for the quarter ended June 30,2008 as compared to Rs 30.88 crore in the corresponding quarter during the last fiscal. Sales stood at Rs 2,899.20 crore, up 46% as compared to Rs 1,983.20 crore in the last fiscal.

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16)Ranbaxy Laboratories on Tuesday reported consolidated profit of Rs 160.8 crore for its second quarter ended June 30 compared to Rs 160.4 crore for the corresponding quarter last year. This, however, does not include the losses due to fluctuations in the foreign exchange rates.
                                  
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COMMODITIES
 
17)Lead once again is the only base metal showing signs of life with prices ticking higher on Tuesday on tightening inventory levels, a trend analysts expect to continue. Stocks fell by 1,450 tonnes to 89,275 tonnes, with the decline largely in Singapore but also in Long Beach. This, combined with recent production cuts at higher cost operations and the likelihood more might follow, has already lifted prices to a two-month high. As of 0915 GMT, London Metal Exchange lead was trading at $2,059 a tonne, up 1.7 per cent from Monday’s low.

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18)Gold prices rose by Rs 95 to regain the Rs 13,000 level on the bullion market in New Delhi on Tuesday on heavy demand from stockists and jewellery fabricators ahead of Teej and Raksha Bandhan amid a steep fall in stock markets. Traders said the rise in prices was also aided by strong cues in the global markets. Gold traded $8.88 higher at $939.50 an ounce in Singapore.

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19)Soybean and mustard seed futures slipped by over one per cent on NCDEX counter today following weak global cues and bearish domestic fundamentals. At 1300 hrs, the most-active August contract slipped by 1.48 per cent at Rs 2,535 a quintal, September contract by 1.58 per cent at Rs 2,453 a quintal and November contract by 1.76 per cent at Rs 2,265 a quintal. Meanwhile, mustard seed futures continued its downward trend in line with weak soybean market and sluggish demand for the produce on speculation that the higher acreage under Kharif oilseeds will lead to good harvest of the crop. Both September and November contracts were in red at Rs 615 and Rs 622 per 20 kg respectively. Spot price of soybean stood at Rs 2,650 per quintal, while it was Rs 629.50 per 20 kg for mustard seeds.

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REAL ESTATE

20)Real estate stocks dropped 5% after the RBI announced the hiked CRR and repo rates. Both developers and analysts think that the development is going to put even more pressure on the real estate sector. The impact is likely to be felt in a major way in the real estate sector, where companies will have to deal with credit squeeze on the one hand, and waning interest on housing on the other, owing to a likely increase in housing loan rates. Says Niranjan Hiranandani, managing director, Hiranandani Constructions, “The RBI’s credit policy does not allow supply of properties to increase. The cost of construction of properties is expected to increase, leading to less supply of properties. This will ultimately increase real estate prices in the long term.”

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BUSINESS PROCESS OUTSOURCING
 
21)THE environmental impact of the business process outsourcing(BPOs) companies is considerable, since they work at night resulting in higher power usage and wastage; and every few years they have a whole truckload of computers(containing hazardous material) to dispose off. Now they are determined to go green. Patni BPO is the latest entrant, Accenture, CSC claim to have efficient systems in place to conserve energy and other resources.

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22)Sundaram Business Services, the BPO arm of Sundaram Finance, has opened a new facility in Chennai for its subsidiary Professional Management Consultants(PMC). This is the fifth delivery centre of Sundaram BPO in the city and can house around 200 people, the company said.

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INFORMATION TECHNOLOGY

23)HOTEL lobbies overflowing with job aspirants awaiting their turn for interview are soon going to be a thing of the past. Voice resumes, the latest technology innovation that HR companies across the country are expected to adopt in the immediate future, are seen to cut the cost of hiring and do away with logistical hassles for corporates. Business communications solutions provider Avaya Global Connect has developed a solution aimed primarily at companies in the IT/ITeS and banking-financial services-insurance space that are into large-scale hiring, which will help them significantly pare their cost and quality of hiring besides cutting on physical travel for interviews.

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24)Software services firm Rolta said it will acquire Chicago-based management and technology consulting services firm WhittmanHart Consulting for an undisclosed amount. Both the companies, Rolta and WhittmanHart Consulting, have signed an agreement to this effect.
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INTERNATIONAL
 
25)US crude oil futures fell more than $2 on the combination of Opec remarks counseling no output cuts in the face of lower prices, a stronger dollar and weak US housing data, sources said. Crude futures fell after being lifted more than a dollar by supply snags in Nigeria. On the New York Mercantile Exchange at 10 am EDT, September crude was down $2.11, or 1.69%, at $122.62 a barrel, trading from $122.59 to $125.85.

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FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd    www.karvy.com
               www.khojhyderabad.com
               www.indiacorporateadvisor.com
               www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd  www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times        www.economictimes.com
The Financial Express    www.financialexpress.com
Business Line        www.businessline.in
Business Standard      www.business-standard.com
The Times of India      www.timesofindia.com
The Hindu          www.hindu.com
Deccan Chronicle       www.deccan.com
The New Indian Express    www.newindpress.com

29 July 2008

GENERAL

1)While the Iran-India gas pipeline remains mired in security and pricing issues, India has indicated its willingness to join the Medi-terranean pipeline project Medstream, running from Turkey through Israel.  After national security advisor M K Narayanan made a quiet trip to Ankara recently, India is likely to send a team of officials to Turkey for a tripartite meeting to firm up details of the feasibility study that is expected to be completed in 10 months.  Energy ministers of the three countries will meet over the coming weeks
  to formalise the timelines and scope of the project.

TOI

CORPORATE / INDUSTRY
 
2)Dr Reddy’s Laboratories, the country’s third-biggest drugmaker, will form a joint venture with one of the world’s biggest biotech companies to make biosimilars or generic versions of patented bio-tech drugs to take on Ranbaxy Laboratories, Reliance Life Sciences, among other Indian companies.  Several drugs are expected to come off patent in this segment in the next five years.

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MONEY & BANKING

3)The rupee ended down 0.65 per cent against the dollar on Monday as most banks bought the greenback to meet month-end demand from lar-ge state-run oil companies, dealers said.  The currency at 42.54, com- pared with 42.26 rupees Friday, after moving in a 42.20-42.54 range.

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4)Hinting at tough measures over time to tackle double-digit inflation, which has touched 11.89%, the Reserve Bank of India(RBI) has said potential inflationary pressures from international food and energy
  prices appear to have amplified. By current indications, it said, they are likely to remain for some time.  The implication of a hike interest rates was made by finance secretary D Subbarao in an interview to a news
  agency.  He said inflation may not have peaked yet and that the central bank may have to hike rates further.  “That looks like an  obvious solu-tion,” the secretary told Bloomberg News from Tokyo on Monday.

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5)POST-MERGER with Centurion Bankof Punjab(CBoP), HDFC Bank’s net profit rose 44.6% to Rs 464 crore for the quarter ended June ’08. Breaking away from the industry trend of slow credit growth, the bank reported an 80% rise in advances.  Without the merger, credit growth would have been in the mid-thirties.

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6)While several public sector banks reported flat growth in profit and some even losses, Mumbai-based Bank of India’s net profit surged by 78 per cent to Rs 562 crore in the quarter ended June 30,2008, against Rs 315 crore in the corresponding period last year.  The bank achieved this by focusing on core banking operations, prudent NPA management and keeping the investment portfolio to the minimum.

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MARKETS

7)INVESTORS and traders refrained from taking any big bets ahead of the RBI meet on Tuesday to review its monetary policy. In addition, the expiry of the current derivatives settlement on Thursday too prompted market participants to take a cautious view.  The 30-share Sensex started on a subdued note following the blasts in Bangalore and Ahmedabad over the weekend, but inched up steadily from then on to end the day at 14349.11, up 74.17 points over the previous close. The 50-share Nifty closed at 4332.10, up 20.25 points.

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8)Mphasis jumped 7.83 per cent to close at Rs 210.10 after reporting a 54 per cent year-on-year(yoy) increase in consolidated net profits to Rs 79 crore, on a 40 per cent yoy rise in revenues to Rs 742 crore in Q1 FY09. 

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9)Sunil Hitech Engineers rose 3.40 per cent to close at Rs 196 after winning three orders worth Rs 649.2 crore, taking its order book to Rs 1374.7 crore.  The orders bagged by the company in the first quar-ter amounts to 64.2 per cent of the order book position ending March 2008.

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10)With over 90 per cent of hedge funds now preferring to trade the Nifty Futures on the Singapore Stock Exchange(SGX), volumes on SGX Nifty are climbing fast.  The trend is giving jitters to domestic investors and stock brokers, who have to change their positions over-night, depending on the opening and closing of the SGX Nifty.

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11)UltraGroup, a pioneer in the domestic home video sector, is planning to list itself on the Bombay Stock Exchange(BSE) by the second quar-ter of 2009.  The capital raised from the listing will be invested in the regional movie-production business which it is entering in 2008.

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MUTUAL FUNDS

12)ING Investment Management India has announced the launch of its open-ended fund of funds scheme called ‘ING Optimix Global Commodi-ties Fund’.  The main objective of the scheme is to achieve long-term
  capital growth by investing primarily in units of global commodity-oriented mutual funds.  The scheme will open on July 29, and close on August 25,2008.

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CORPORATE SCORE

13)BUOYED by heavy demand from the construction and engineering sector, Larsen & Toubro (L&T) has posted a better-than-expected 33% growth in net profit of Rs 502 crore in quarter ended June 2008 compared to the same period last year.  The total income increased by 51% to Rs 7,103.26 crore in the quarter under review while its gross sales grew 53% to Rs 6,993 crore.

ET

14)OIL & Natural Gas Corporation’s (ONGC) net profit jumped by 44% to Rs 6,636 crore in the first quarter of the current fiscal (against Rs 4,611 crore in Q1 2007-08), riding on high global crude oil pri-ces.  ONGC average realisation was $125 a barrel as compared to a low of $71.90 a barrel in Q1 last fiscal.  Net realisation (after provi-ding for subsidies) on crude sales for Q1 this fiscal stood at $69.14 a barrel as against $50.34 a barrel.

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15)Judicious cost optimisation has helped GlaxoSmithKline Pharmaceuti-cals navigate the combined effect of rising crude prices and input costs, observed the Managing Director, Dr Hasit B Joshipura.  The company  posted a net profit of Rs 114.86 crore for the quarter ended June 30,2008, as against Rs 96 crore for the quarter ended June 30,2007. It clocked a total income of Rs 442.80 crore  for this quarter compared with RS 415 crore in the same period last year.

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COMMODITIES

16)The turnover of commodity markets rose in July compared to that in the year-ago period following a shift of traders’ interest from agri-cultural products to non-agricultural commodities.  A bearish stock market and the government’s decision not to impose a ban on more commodity markets.  Led largely by an upsurge in global non-agri commodities trading and a couple of agri commodities, the turnover on the Multi Commodity Exchange(MCX), the country’s largest commodity bourse, shot up to Rs 3,85,681 crore in July(up to July 26) this year from Rs 2,06,111 crore (for the full month) in July 2007 and Rs 3,60,646 crore in June 2008.

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17)Gold edged higher in Europe on Monday in line with firmer oil prices and as the dollar weakened a touch against the euro, boosting bullion’s appeal as a currency hedge.  However, the precious metal is expected
  to remain range bound as the market takes a breather after Friday’s volatile session, with traders eyeing an initial target of $935 an ounce. Gold rose to $929/930 an ounce at 0911 GMT from $927.40/929.40 late in New York on Friday, when it moved in volatile $16 range.

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18)Gold prices recovered by Rs 45 to Rs 12,905 per 10 gm in the bullion market in New Delhi on buying spport from stockists and jewellery fabricators at lower levels, ahead of the coming festival season. Standard gold and ornaments rose to Rs 12,905 and Rs 12,755 respectively.  Silver ready shot up by Rs 100 to Rs 24,650 a kg.  In the mumbai bullion market, standard gold closed at Rs 12,780 per 10 gm and silver at Rs 4,940 a kg.

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19)Guar seed spot and futures prices are likely to remain weak in the short term, due to rainfall activity cross guar seed cultivating areas. Reports show that most of Rajasthan and Gujarat have been covered with clouds and rainfall has been reported in some parts of these two states.  This rainfall was very beneficial for delayed sowing activities.

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REAL ESTATE

20)Unitech Realty Investors India, the asset management arm of Unitech, aims to raise up to Rs 500 crore his year through its fourth domestic realty fund, a company executive said on Monday.

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BUSINESS PROCESS OUTSOURCING
 
21)BPO firm WNS (Holdings) Limited has partnered with the Airlines Reporting Corporation(ARC) – a provider ff financial settlement solutions and data analytical services for the travel industry to extend its reach into the airline and travel sectors.  This alliance with ARC will allow WNS to provide a more comprehensive suite of airline specific finance and accounting services to its clients.  The companies will be able to combine their data analytics and jointly identify new opportunies to forge relationships within the travel industry.

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INFORMATION TECHNOLOGY

22)BULKY desktops and expensive laptops will soon face tough competition as low-budget notebooks pularly known as ultra-portable PCs  are being introduced in the market.  The biggest advantage these note  books have is their miniature size and light weight, which has increased their demand as a lifestyle product across Indian households, say analysts.

ET

INTERNATIONAL

23)Crude oil traded near a seven-week low in New York after falling as the Organisation of Petroleum Exporting Countries and China raise output.  Opec’s supply will increase by 200,000 barrels a day in July from a month ago, PetroLogistics Ltd said July 25.  Crude oil for September delivery traded at $123.45 a barrel, up 19 cents, in electronic trading on the New York Mercantile Exchange at 11:45 a.m.

BL
FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd             www.karvy.com
                                               www.khojhyderabad.com
                                               www.indiacorporateadvisor.com
                                               www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd      www.KARVYGlobal.com
KARVY Realty (India) Limited   www.karvyrealty.com
Economic Times                     www.economictimes.com
The Financial Express             www.financialexpress.com
Business Line                         www.businessline.in
Business Standard                  www.business-standard.com
The Times of India                 www.timesofindia.com
The Hindu                              www.hindu.com
Deccan Chronicle                   www.deccan.com
The New Indian Express         www.newindpress.com

28 JULY 2008

GENERAL 

1)India has filed a copy of its plan for the separation of civilian and military nuclear facilities with the International Atomic Energy Agency as part of the process for getting its safeguards agreement approved by the nuclear watchdog’s Board of Governors on August 1.

Hindu

ECONOMY & POLICY
 
2)The National Pharmaceutical Pricing Authority (NPPA) may soon allow pharma companies to increase prices of over 70 medicines, including some antibiotics as well as imported life savers.  The authority will consider price revision applications of these medicines at a meeting scheduled for July 31, following representations from companies asking it to hike prices.

BS

CORPORATE / INDUSTRY
 
3)RIL, which is set to become the single largest gas producer in the country once its Krishna Godavari gas hits full production, may also become the largest gas distributor soon with operations in 52 major cities.Reliance Gas Corporation(RGCL), a subsidiary of RIL, has emerged as the sole entity to submit expression of interest(EoI) for these cities. The company would have an exclusivity over gas distribution in these cities for five years as per the as distribution policy.

ET

4)THE Godrej group plans to make equipment for the oil and gas sector. The plans will be executed through Godrej & Boyce, an engineering company. The initial investment for the project is pegged at Rs 150 crore. The company has already acquired land at Dahej in Gujarat to implement its plans.

ET

MONEY & BANKING

5)THE bond street and several analysts may have bet on a hike in key rates, but the recent tightening in money markets may influence the Reserve Bank of India to hold back for now, believe some market participants.  Their logic is that RBI may opt to wait a few weeks more to gauge the progress of the monsoon before further tightening the liquidity in its quarterly policy review on Tuesday.

ET

6)Kerala-based Federal Bank has termed the buying of 5% share in another state based bank, Catholic Syrian Bank(CSB), as a “strategic investment” and cotched rumours of an immediate takeover. Bank chairman M Venugopal told FE that the bank was not in the fray for buying the rest of the shares owned by the Chawla family, the single largest shareholder group in CSB.

FE

7)Fixed home loans are passe. Today,more and more home loan borrowers opt for floating home loan and their percentage has increased over the past few years. Though fixed home loan rate was viable when interest rates were 7-8% in 2003 but now it has doubled to 13-14%, thanks to the fluctuating economic conditions that have resulted into further monetary tightening.  This has inclined people towards floating rate wherein they see both highs and lows during the long tenure of the loan and does not end up paying higher amount throughout the entire tenure.

FE
 
MARKETS

8)ON MONDAY morning, all eyes will be glued on to Dalal Street. The serial blasts in Bangalore and Ahmedabad have rocked the nation, and there’s a growing sense of unease.  How will the trading community react when the market opens for trading?  The mood among the trading community is that terrorism is unlikely to cause much panic on Monday. Instead, brokers hope the market would show the kind of resilience it did many times in the past when terror struck. While there could be some initial jitters when trading opens on Monday, most brokers feel the impact will not last long as focus will shift to broader issues the domestic and the global economy – which affect investment. In the near term, the market is likely to remain volatile in the wake of a few major events like RBI’s monetary policy review and expiry of futures & options contracts on Thursday.  Besides, the progress of the monsoon and corporates quarterly numbers will also be keenly watched, according to brokers.

ET

IPO

9)NHPC’s much-delayed initial public offering is likely to hit the  market in September with a record 167-crore equity shares being of fered under book building route. NHPC, the nation’s largest hydro electric power generator, will sell 10 per cent shareholding through the IPO, while the Government would offload 5 per cent of its equity in the company alongside.

BL

MUTUAL FUNDS

10)After dabbling in stocks with abandon, and a few burnt fingers later, the average Indian investor is now wider, and more mature. With the markets remaining volatile in the past six months, swinging with global developments, investors have taken refuge under mutual funds(MFs). More and more investors are signing up for systematic investment plans (SIPs) of MFs, rather than investing in equities directly. Indian MFs have seen more than 2 lakh new SIP accounts being opened with different fund houses in the last two months. This month, Birla Sun Life Mutual Fund(BSLMF) registered over 50,000 SIP investors, while UTI Mutual Fund(UTI MF) saw over 60,000 SIP investors joining it in June. Reliance Mutual Fund registered over 90,000 SIP investors last month, while ICICI Prudential Mutual Fund opened over 36,000 SIP accounts in June-July.

FE
 
COMMODITIES 

11)All the major commodities futures on the MCX platform, on the week ended on Friday, continued to slide tracking global cues amid continued selling pressure by local operators. MCX Gold futures slipped below Rs 13,000 per 10 gram on weak London markets, supported by dull domestic demand. Crude oil futures also fell sharply by nearly 5% last week amid volatile markets. Volume in gold and crude oil decreased with limited buying support. Major base metals futures also remained weak.

FE

12)Revival of monsoon in recent days has brightened the prospects of soyabean output in the kharif season.  Soyabean sowing has regained momentum in the last few days and the acreage under cultivation has increased 18.38 per cent to 6.50 million hectares from 5.49 million hectares logged last year, according to Union Agriculture Ministry data.

BL

COMMUNICATIONS
 
13)DECKS have been cleared for the largest merger in the Indian telecom industry, with the government initiating steps to bring BSNL and MTNL together. According to sources in the government, the proposed merger may happen after BSNL’s initial public offer(IPO) is launched.                                   

ET
 
BUSINESS PROCESS OUTSOURCING
 
14)In a bid to boost its revenues from newer markets, Indian BPO firm Firstsource Solutions is stepping into new geographies like Australia and the Gulf region.  “We are looking at diverse geographies and Australia and the Gulf region look promising,” said a top company official.

FE

15)There will be an almost four-fold rise in the number of people employed for providing back office services to Indian domestic firms as this industry is expected to more than treble in revenues by 2012. According to a study by the Pune-based research firm, Valuenotes Database, domestic business process outsourcing (BPO) firms would collectively employ about 5.4 lakh employees in the next four years as against 1.4 lakh staff currently. In the same time period, it will achieve revenues of Rs 22,800 crore from Rs 6,900 crore in fiscal 2008, the study suggests.

BL

16)Satyam BPO, the business processing arm of Satyam Computer Services, is tapping a new wave of opportunities in the life sciences segment and is now high on long-term contracts. To facilitate the global pharma industry, which is passing through upswings due to increase in the raw materials, R&D costs and thin drugs pipeline, the company would be offering end-to-end services in pharma-covigilance, litigations, market analytics and e-learning in the pharma segment.

FE
 
INFORMATION TECHNOLOGY

17)In an era of globalisation, where offshore services are an important part of the business done by Indian IT companies, experts say that there is an increasing demand for local presence in non-English speaking countries with local resources.  According to analysts, Indian IT companies could lose their pie of offshoring business to other countries if they lacked in giving a local language support.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd        www.karvy.com
                                          www.khojhyderabad.com
                                          www.indiacorporateadvisor.com
                                          www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd    www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times                   www.economictimes.com
The Financial Express           www.financialexpress.com
Business Line                      www.businessline.in
Business Standard               www.business-standard.com
The Times of India              www.timesofindia.com
The Hindu                           www.hindu.com
Deccan Chronicle                www.deccan.com
The New Indian Express      www.newindpress.com

26 July 2008

GENERAL

1)In keeping with its policy to build maritime bridges with countries in the region, India will be hosting two Saudhi Arabian warships in its waters from July 28 to 31. Al Dammam, a modified French La Fayette-class stealth frigate, and Yan bou, a modified American Durance-class warship, will dock at Mumbai next week, in what will be the first-ever such naval visit to India by Saudi Arabian warships.

TOI

CORPORATE / INDUSTRY

2)JSW Steel Group today said it has identified a place in Orissa to build a port with an initial capacity of 25-30 million tonnes at an investment of Rs 2000 crore. “We have identified a place in Orissa situated in Bhadrak district. We are talking to the government,”  JSW Steel vice-chairman and managing director Sajjan Jindal  said.

BS

3)DELHI-based component major Amtek group is going in for a major restructuring exercise as part of which it will consolidate all its Indian companies under group flagship Amtek Auto. The roster of companies to be consolidated will include Amtek India, Ahmednagar  Forgings, Benda Amtek and Amtek Siccardi.

ET
 
MONEY & BANKING

4)The rupee depreciated by 11 paise against the dollar mainly due to  losses in the stock market. The domestic currency opened weaker at 42.21/22 due to the fall in global indices. It touched an intra-day low of 42.35 and closed at 42.25/26, against the previous cose of 42.14/15.

BL

MARKETS

5)EXTENDING losses for the second day on Friday, the Bombay Stock Exchange benchmark Sensex shed a hefty 500-plus points due to aggressive selling triggered by weak global cues. The 30-share BSE barometer which opened lower by 446 points lost further and closed 502.07 points down at 14,274.94 points. The 50-scrip index Nifty on the National Stock Exchange also ended down by 121.70 points at 4,311.85. It touched the day’s low of 4,297.15 and a high of 4,440.85.

ET

6)Mangalore Refinery and Petrochemicals(MRPL) rose 16.7 per cent to Rs 67.45 on the Bombay Stock Exchange to emerge as the top gainer in the ‘A’ group. The company reported a 129.39 per cent surge in net profit to Rs 845.40 crore on a 43.97 per cent rise in total income to Rs 10,811.39 crore in Q1 FY09.

BS

7)United Phosphorus Limited UPL) rose 5.21 per cent to Rs 336.95 on the Bombay Stock Exchange and was the fourth biggest gainer in the ‘A’ group. The company reported a 57.9 per cent rise in net profit to Rs 46.63 crore on a 54.26 per cent increase in total income to Rs 553.67 crore in Q1 FY09. It announced a bonus in the ratio of one equity share of Rs 2 each for every share held.

BS

MUTUAL FUNDS

8)JM Mutual Fund, the asset management arm of the JM Financial has identified three institutional investors namely, Valiant Capital Partners, Blue Ridge Capital and Eton Park, who propose to participate in the equity capital of the company to the extent of 4% each in the equity, at a premium, on a fully diluted equity capital of the business. These investors will be contributing together Rs 111.7 crore giving a total post money valuation of Rs 931 crore  which works out to 7.32% of the current assets under management. The AUM has stabilised at around Rs 11,000 crore due to bearish markets and lower levels of investor activity.

FE

CORPORATE SCORE

9)At a time when concern is rife that high inflation might lead to lower consumer spends, the country’s largest fast-moving consumer  goods(FMCG) company, Hindustan Unilever Ltd(HUL), said it posted one of the highest quarterly sales in recent times, driven by an underlying volume growth of 8.3% and price growth of 9.7%. HUL on Friday said it posted a 13% rise in net profit at Rs 558.18  crore for the quarter ended June 30,2008 (the company’s second quarter), compared with Rs 493.08 crore for the same period last year. The company’s total income increased from Rs 3,508 crore to Rs 4,300 crore for the same quarter.

FE

10)ABB India Ltd’s net profit during the second quarter of the current fiscal rose 21 per cent to Rs 132 crore driven by rising orders, which grew 11 per cent to Rs 221 crore. The overall revenue saw a rise of 16 per cent at Rs 1,637 (Rs 1,415.6 crore).

BL

11)Indian Hotels Co, which owns the luxury Taj chain of hotels, has notched up a nearly 12 per cent increase in net profit for the quarter ended June 30,2008, mostly driven by high room rates. IHC, part of the salt-to-software Tata Group, reported a net profit of Rs 61.27 crore, as against Rs 54.76 crore in the same period of last fiscal.

BL
 
COMMODITIES

12)Despite the government’s imposition of a ban on the trading of futures of eight commodities, the turnover of 22 commodity exchanges registered a rise of more than 33% till July 15. The turnover went up to Rs 13,53,173 crore against Rs 10,14,845 crore during the corresponding period in 2007-08. According to data released by commodity-market regulator, the Forward Market Commission(FMC), during July 1-15 the total turnover of all 3 national commodity exchanges and 19 regional exchanges in the country doubled to Rs 2,36,846 crore from Rs 1,17,028  crore recorded in the same period in the previous year.

FE

13)WITH stocks turning volatile, high net worth investors have shifted focus to commodities, increasing their exposure in the futures market while going slow on stocks. With prices rising, commodities are turning out to be a good investment hedge. And this is reflected in the turnover of the commodity exchanges. On January 4, the combined turnover of MCX and Ncdex at Rs 20,000 crore was a fifth of the turn- over in equity markets. Six months down the line, things have changed with the aggregate turnover on these two exchanges rising to Rs 31,000 crore while that at NSE and BSE dropping to Rs 59,000 crore.

ET

14)Gold rose on Friday as the dollar weakened and oil prices pared losses, while platinum and palladium firmed from 6-month lows on bargain hunting. Spot gold was up at $931/932 an ounce at 1000 GMT from  $923/24 late in New York on Thursday.

BL

15)Future prices of chilli(LCA334 grade) on the national bourse are set to bounce back and expect to rule higher in the next few days  mainly on reduced warehouse stocks, steady demand for export and  slow progress of sowing in the chilli-growing areas, mainly Andhra Pradesh.

FE

16)Pepper and cardamom production from Kerala is likely to be affected because of low monsoonal rains in the regions producing these two spices. The shortfall in the monsoon has been worst in the Idukk and Wayanad districts of Kerala. These districts account for 70% – 80% of the pepper and cardamom production in the country.

FE

REAL ESTATE

17)At a time of market slowdown and cash crunch, the real estate sector is battling with too many odds. While the going has got tough for them, realty firms are reinventing themselves constantly to keep their profit margins intact. Vipin Aggarwal, executive director, finance, Omaxe Ltd, confessed to having started exercising cost cutting measures. He specified, “We are planning more affordable housing, repackaging homes, introducing friendlier home loan payment schemes.”

FE

18)Backward integration seems to be the order of the day in the construction and real estate sector. The rising cost of raw materials and thin- ing of margins has forced many real estate and construction compa- nies to set up their own factories for manufacturing raw materials such as ready mix concrete, form work and crushed aggregates.

FE

INFORMATION TECHNOLOGY

19)THE $50-billion IT services industry is in for some tough times now. It’s not just a slowdown in IT spending that’s a concern, but in- creasing competition from the multinational service providers who
 have ramped up significantly. With a robust low-cost delivery model in place, MNC IT services companies including IBM, Accenture, HP- EDS, CSC have bagged quite a few new offshoring contracts in recent times. This includes contracts where Indian IT companies were already doing work for the clients.

ET

INTERNATIONAL
    
20)Crude oil went lower again on Friday and gave back most of its gains from the previous session. Light sweet crude for September delivery moved to $124.53, down 96 cents on the session. Oil touched as low as $123.85 in electronic moves.

FE

21)HOME foreclosure filings rose 14% in the second quarter, the eighth consecutive quarterly climb, and more than doubled from the same period a year-earlier, real estate data firm RealtyTrac said on Friday. Home foreclosure filings during the second quarter were reported on 739,714 US properties, up 121% from a year earlier, RealtyTrac, a online market of foreclosure properties, said in a report. The surg in foreclosures indicates an increasing number of home-owners are struggling to make mortgage payments amid the worst US housing market down turn since the Great Depression.

ET
 

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd    www.karvy.com
              www.khojhyderabad.com
              www.indiacorporateadvisor.com
              www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd  www.KARVYGlobal.com
KARVY Realty (India) Limited www.karvyrealty.com
Economic Times       www.economictimes.com
The Financial Express    www.financialexpress.com
Business Line        www.businessline.in
Business Standard      www.business-standard.com
The Times of India     www.timesofindia.com
The Hindu          www.hindu.com
Deccan Chronicle      www.deccan.com
The New Indian Express   www.newindpress.com

16 June 2008

GENERAL


1)INDIA’S maiden moon mission Chandrayaan-I has reached a major milestone as scientists completed integration of all instruments onto the spacecraft and are aiming to launch it by September 19. Scientists at the Indian Space Research Organisation(ISRO) last week completed the integration of 11 instruments six indigenous and five under international cooperation onto the spacecraft which is no bigger than a typical office cubicle.

Indian Express

CORPORATE / INDUSTRY

2)DECCAN Cements, a Hyderabad cement manufacturing company, is on an expansion drive. The company is investing around Rs 432 crore to add 1.3 million tonne production capacity to the existing 0.7 mil- lion tonne. The company plans to raise Rs 150 crore from internal ac- cruals and the rest from term loans from a consortium of banks that includes SBI, SBH, Andhra Bank and Indian Bank.

ET

3)THE Nano effect on the auto component sector continues. Now, it is the turn of tyre manufacturer JK Tyres and Industries to set up a greenfield site for tyres for passenger cars, to address the emerging market following the launch of small cars that most major OEMs have announced.

ET

4)If you thought discounts and offers are restricted only to cars, think again. The slump in the tractor industry in the last fiscal has forced major players to come up with promotional schemes that can boost demand. This is more pronounced as the harvest season is about to end and there is abundant cash available with Indian farmers to buy a tractor.

FE

MONEY & BANKING

5)Even as financial institutions grapple with the global credit crunch post the sub-prime crisis, Standard Chartered Bank finds itself well positioned to support the growth of companies in Asia, West Asia and Africa. The squeeze in credit has made effective liquidity management critical for companies, and this presents an opportunity for banks such as Standard Chartered.

BL

INSURANCE

6)Insurance buyers are keeping away from unit-linked insurance plans (Ulips) due to the continues volatility in the stock market. The life insurance industry, which was growing over 100 per cent last year, registered a negative growth for the month of April this year, reporting a decline of 6.77 percent. It gathered a new business premium of Rs 2,780.11 crore in April this year as against Rs 2,982.28 crore in April 2007.

BS

7)Reliance Life Insurance has set its eyes on the mass market segment. The company will launch the Reliance Super InvestAssure Plan(RSIP), a Ulip with a minimum premium as low as Rs 5000, next week. “The plan offers guarantee contributions in case the customer remain in- vested for atleast 10 years. We are targeting the mass-market as the product has a minimum lower premium. The plan is not ideal for high networth individuals,” said P Nandagopal, CEO, Reliance Life Insurance.

BS

MARKETS

8)THE spectre of inflation, which many bet would rise to double digit soon, is expected to keep shares of interest-rate-sensitive sectors such as banks and real estate under pressure. Investors fear the Reserve Bank of India(RBI), as part of its efforts to con- tain rising inflation, would resort to make banks’ lending rates dearer. Analysts expect the central bank to hike the cash reserve ratio (CRR) next – the minimum cash that banks need to keep with RBI, after the recent hike in repo – the rate at which banks borrow from RBI for short-term.

ET

9)MANY investors will now try to figure out how to play at the RCOM counter, with Reliance Industries (RIL) putting a spoke in the wheel of the RCOM-MTN deal. While the outcome is anybody’s guess,investors seem confused on what lies ahead. The stock, which has been trad- ing flat after the RCOM-MTN deal announcement, is likely to enter volatile territory in the coming days without any substantial upswings or downturns, say market experts.

ET

MUTUAL FUNDS

10)Different times call for different measures and that seems to be re- tail investors and fund houses’ policy at present. Six months after witnessing a huge frenzy, retail investors are now opting for a safer route and have turned towards equity schemes of mutual funds. Joining them are fund managers, who feel that the markets are yet to correct fully and have increased their cash allocations in anticipation of get- ting smart bargains. According to Amfi,inflows into new equity sche- mes(growth and equity-linked saving schemes or ELSS) saw a 145% jump(Rs 12,439 crore) in the first five months of the currentcalen- dar year, compared to the corresponding period last year. The MF industry has mobilised Rs 21,006 crore between January and May through new equity schemes, against Rs 8,567 crores for the corres- ponding period in 2007. Around 26 equity schemes(new fund offerings or NFOs) were launched this year, while during the corresponding period in the last year saw 24 NFOs in growth and ELSS schemes. Paras Adenwala, chief investment officer of ING Investment,Man- agement India, said. “In this volatile market, investors have realised that they can’t risk their money in the volatile markets directly and instead invest through the MF route as MFs are better equipped in the current scenario to give higher returns compared to equity markets.”

FE

11)Real Estate Mutual Funds, which are expected to be introduced this year, will have two independent valuers, the Chairman, Association of Mutual Funds in India(AMFI), Mr A P Kurian, said. “About two to three funds are ready with their products and are likely to launch during the course of this year. The guidelines mandate that there should be two independent valuers,” he said. The valuers would look at whether the mutual fund has invested at the correct price.

BL

12)INDIAN Bank is planning to revive its mutual fund arm, In Fund Management to participate in the over Rs 6,00,000 crore market. “We are in the process of reviving the asset management business, the licence for which was surrendered to Sebi a few years ago,” In- dian Bank chairman and managing director MS Sundara Rajan said.

ET

COMMODITIES

13)THE Indian commodity market is expected to grow by 30% and will reach Rs 74,156 billion ($1.73 million) in volume by 2010, accord- ing to a study by the Associated Chambers of Commerce and Industry of India(Assocham). Assocham found that the Indian commodity mar- ket expanded 50 times in a span of five years from Rs 665.3 billion in 2002 to Rs 33,753 billion in 2007 as people’s participation in such trade continued to grow. “The growth in commodities deriva- tives trading would now grow by about 30% to reach a projected level of Rs 74,156 billion in the next two years,” said Assocham president Sajjan Jindal.

ET

14)After the sharp decline in early 2008, nickel futures are set for an upward move in the short term. The recent explosion at Apache Energy’s plant in Australia is expected to hit gas supply to mining companies.

BL

REAL ESTATE


15)Affordable housing, the most neglected segment of the real estate sector, is now attracting large-scale investments from developers as well as private equity funds. While real estate major like An- sals, Omaxe are planning low-budget housing projects in smaller towns and cities across the country, private equity players are firm- ing up huge investment plans. Recognising the potential growth in affordable housing segment, Delhi-based Omaxe Ltd hasformed a new company, National Affordable Housing Infrastructure Ltd, that will invest Rs 80,000 crore to develop 100,000 affordable homes across the country. “While smaller towns and cities will be the primary target of this venture, the first project is expected to come up in Rajasthan or Uttar Pradesh by the end of this year,” said Rohtas Goel, chairman and managing direcor, Omaxe Ltd.

BS

16)GOLDMAN Sachs, a global financial giant, is striking a Rs 200-crore land deal with realty developer Embassy Group for developing a cor- porate campus on a 9-acre plot at Hebbal in Bangalore. The invest- ment banking, securities and investment management firm is acquiring the land to set up 7 lakh sqft office space, also to be developed by Embassy, taking the total deal size to over Rs 300 crore, sources said. It is believed that Embassy is selling the land close to its own Manyata Tech Park, one of its major developments, located near Hebbal on the way to new Bangalore International Airport.

ET

17)Nasdaq-listed business process outsourcing firm EXL Services is in talks with real estate companies including DLF, Unitech and 3C for purchasing properties as a move to cut costs on rentals. “If we can own our real estate, we will not have an increase in cost on account of lease-hold improvement and lease rentals that we currently pay. We are already in talks with Unitech and 3C in Noida and DLF in Gurgaon for purchasing the properties,” said EXL chief executive officer and president Rohit Kapoor.

ET

18)Hyderabad-based Mansani Constructions is introducing an exchange offer facility, which the company claims to be the first in the real estate sector, whereby one can exchange his/her old flat with a new house at Mansani’s Enclave project at Karmanghat on the outskirts of Hyderabad for the same price,according to a press re- lease on Thursday. Mansani has constructed 2 million square feet of living space over a period of 14 years.

BS

COMMUNICATIONS

19)NETCORE Solutions, a provider of products and services in the messaging and mobile space, plans to provide email services to ordinary mobile phones without global positioning radio system (GPRS), a top company official said. “Presently, it is possible to send and receive e-mails only through blackberry or else one has to activate GPRS services. with our product, it would now be possible for users of ordinary mobile phones to reply, forward and create new emails,” said Netcore Solutions’ chief executive officer Abhijit Saxena.

ET

BUSINESS PROCESS OUTSOURCING

20)A ship’s journey is complete when it returns home. Having sailed through the Americas, Europe and some parts of Asia-Pacific, Indian BPO companies in recent years have been heading home to dock their businesses. “From a few domestic (BPO) operators in 2003, today the number of players is in housands,”say Mr Anish Zaveri, Associate Director, Sourcing Advisory, KPMG. A strong rupee and recession in the US market(which contributes over two- thirds of total Indian BPO exports) have pushed companies, who were hiterto reluctant to start Indian operations, to look inward. If this momentum continues, the dip in overseas revenues will be offset by the rise in domestic revenues, he says.

BL

21)Indian business process outsourcing(BPO) companies will approach state governments and prospect to incorporate a curriculum which is more’industry friendly’ in the colleges, according to players in the sector. Ten companies who were part of the Nasscom BPO forum were teaming up to create syllabus including ‘subjects relevant to today’s employment opportunities,’ co-founder of 24/7 Customer, Shanmugam Nagarajan told FE.

FE

INFORMATION TECHNOLOGY

22)Infosys Technologies, India’s second-biggest software developer, said it plans to raise the share of its revenues from Europe to counter a slowdown in the US, the world’s biggest economy, which fetches it about 60 per cent of its sales.

BS

INTERNATIONAL

23)SAUDI Arabia may announce an oil output increase at a meeting it will host in Jeddah on June 22 for oil producers and consumers because customers are asking for more crude, an Opec official said on Sunday. There is more demand for Saudi oil from “all over” the world, the Orga- nisation of Petroleum Exporting Countries’ official said in an interview. He declined to comment on the size of the possible increase and denied reports that the Saudi Oil Minister Ali Al-Naimi would make any state- ment on oil production. The kingdom will host the Jeddah summit af- ter oil prices more than doubled in a yearto a record $139.12 a barrel on June 6. Crude oil fell on June 13 to settle at $134.86 a barrel on the New York Mercantile Exchange as al-Naimi said prices were “unjusti- fied.”

ET

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd                 www.karvy.com
                                                   www.khojhyderabad.com
                                                   www.indiacorporateadvisor.com
                                                   www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd         www.KARVYGlobal.com
KARVY Realty (India) Limited      www.karvyrealty.com
Economic Times                         www.economictimes.com
The Financial Express                www.financialexpress.com
Business Line                             www.businessline.in
Business Standard                      www.business-standard.com
The Times of India                     www.timesofindia.com
The Hindu                                  www.hindu.com
Deccan Chronicle                       www.deccan.com
The New Indian Express             www.newindpress.com