13 June 2008

GENERAL
 
1)India may have to increase fuel prices again as global crude prices continue to rise, says credit rating agency Moody’s. “As global prices continue to soar, the government will likely announce further increase in energy prices and cuts in subsidies,” said a report by Moody’s Economy.com, an associate of Moody’s

Hindu

ECONOMY
 
2)GROWTH of industrial output rebounded to 7% in April, after sagging to a low of 3.9% in March(3%, as per the original estimate). Suggesting sustained investment growth, growth of capital goods touched a robust 14.2% in April, continuing its recovery, after having slumped to 2.3% in January, turning in growth rates of 10.4% in February and 11% in March.

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CORPORATE / INDUSTRY
 
3)BILLIONAIRE Mukesh Ambani-promoted Reliance Industries (RIL) will become one of the largest energy companies in the world after its refinery and offshore gas fields begin production, chairman Mukesh Ambani told shareholders on Thursday. “Reliance is now on the verge of a quantum leap in one of its several growth platforms: energy. Two very large projects, founded on the energy growth platform, will be commissioned in the second half of this financial year.  They will mark a historic milestone in Reliance’s leap to global heights,” Ambani said at the company’s thirty-fourth annual general meeting in Mumbai. The $5.7-billion refinery at Jamnagar Export Refinery Project (JERP) with capacity of 27 million metric tonnes per annum will create the largest refinery site in the world once it starts before December this year.

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4)A day after selling close to 35% in Ranbaxy Laboratories Ltd for Rs 10,000 crore,MD & CEO Malvinder Singh on Thursday said he wanted to reap the huge opportunities in Japan for the company’s future growth. “The attractiveness of the market was a big factor in Ranbaxy’s decision to team up with Daiichi Sankyo,” Singh said in Tokyo. Japan has a low rate of generic drug use, around 17% of volumes compared with 63% in the US. “There is tremendous opportunity here and clearly, we would want to explore it to the fullest,” Singh said.

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5)The Chennai-based Consolidated Construction Consortium Ltd is set to take a 40 per cent stake in Innotech Construction LLC of Dubai. CCCL has informed the stock exchange that it has entered into a ‘strategic and investment partnership’ with Innotech Construction which will help both companies grow in the civil engineering contract business in the United Arab Emirates(UAE).

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6)ABG Shipyard has bagged a Rs 127-crore order from an Italian company for construction of shipping vessel. The company has bagged an order from Italy-based Marnavi Spa for construction of a vessel for anchor handling towing, offshore supply operations, ABG said in a filing to the BSE.

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MONEY & BANKING

7)The rupee crept up on Thursday as a hike in the central bank’s key lending rate boosted sentiment for the local unit, but gains were capped by a rise in global oil prices and a wobbly stock market. The partially convertible rupee ended at 42.8350/8450 per dollar 0.05 per cent stronger than Wednesday’s close of 42.86/87. It had hit a 13-month low of 43.21 on May 22.

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8)PUBLIC sector player Central Bank of India plans to raise at least Rs 1,500 crore from the market by the end of December to adequately cover the loans expected to grow by a quarter this year, a senior official said. Central Bank executive director Albert Tauro told reporters in Chennai on Thursday that the bank is looking at various options including tier-II capital, a follow-on public offering, preferential capital and qualified institutional placements. It might be one of these, or a mix of these, he said.

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9)The board of directors of Karnataka Bank, which met in Banglore on Thursday, has decided to issue one share for every five share held on rights basis at a price of Rs 100 per share. With this, the board has decided to increase the authorised share capital of the bank from Rs 150 crore to Rs 200 crore, subject to necessary approvals.

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10)MOBILE phone owners in the future will be allowed in the future will be allowed to transfer funds from their accounts to other mobile phone owners across networks and service providers. This is what the Reserve Bank of India’s (RBI) draft operating guidelines for mobile payments aim to achieve. As per the draft, even those with the most basic mobile phones may be able to pay for transactions through mobile in the future. RBI has permitted the use of SMS based mobile payments for small transactions up to Rs 1,500 in its draft.

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INSURANCE
 
11)ING Vysya Life, part of the ING Group, today announced the launch of two lifestyle protection products, ING term Life and ING Term Life Plus. Both the products offer flexibility to choose premium paying terms between 10 years and 30 years. These plans are customisable plans, thereby allowing customers to choose the way they wish to pay premium. Both the products are simple to obtain and offer high non-medical limits. Rider options, including accidental death benefits and accidental death, disability and dismemberment benefits are also available on the two plans, it said.

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MARKETS
 
12)Taking cues from the weak US markets and repo rate hike in India, key indices opened the day on the negative note on Thursday but recovered after index of industrial production (IIP) figures, which stood at 7%, poured in along with positive leads from the European markets. The two key indices – the NSE’s Nifty and BSE Sensex closed above 4,500 and 15,000 respectively. The 30-share Sensex closed at 15,250.20, gaining 64.88 points or 0.43%. The Nifty surged 15.75 points or 0.35% before finally ending the day at 4,539.35 points.

FE

13)The new fertiliser subsidy plan by the Government drove up fertiliser stocks on Thursday. Among the fertiliser scrips that rose today were Tata Chemicals(up 1.57 per cent at Rs 356.65), Gujarat Narmada Valley Fertiliser Company(up 2.72 per cent), Nagarjuna Fertilisers and Chemicals(up 3.25 per cent at Rs 44.5), Chambal fertilisers and Chemicals(up 4.72 per cent at Rs 83.25), Rashtriya Chemicals and Fertilisers(up 3.3 per cent at Rs 62.1), Zuari Industries(up 3.79 per  cent at Rs 246.45), Coromandel Fertilisers(up 3.15 per cent at Rs 124.50) and Gujarat State Fertilisers and Chemicals (up 1.83 per cent at Rs 164).

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14)Food processing company Temptation Foods touched an all-time high today at Rs 298.20 per share on the BSE, following talks of a possible acquisition of a mid-sized food firm. The company’s scrip soared 21.29 per cent in the last one week and 40.49 per cent in the last one month. The food firm is expected to come out with a  qualified institutional placement(QIP) in 10 days to fund its acqui- sition plans, say sources.

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IPO

15)State-run Oil India has decided to go ahead with its initial public offer plan and hopes to launch the issue by September, a top company official said on Thursday.

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16)The decision of Ranbaxy’s promoters to sell the entire 34.8% stake to Japanese pharma company Daiichi Sankyo will in no way derail the plans of Shivinder Singh-led chain of pathological labs, SRL Ran- baxy’s plans to raise Rs 200-250 crore through an initial public offer of shares by September.

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17)The Professional Couriers, which became the first ISO9001:2000 certified Indian courier company, will be going public towards the end of 2009. The company, which clocked a turnover of Rs 400 crore in 2007-08, is planning to take on lease six cargo aircraft after the initial public offering.

Hindu

MUTUAL FUNDS

18)Birla Sun Life MF has launched a systematic investment plan(SIP) Century SIP that offers an opportunity to crate wealth with a minimum of Rs 1,000 per month along with an insurance cover of up to 100 times the SIP instalment. This plan comes along with free term insurance for an individual of up to 55 years of age, a release issued on Thurs- day stated. Birla Sun Life MF’s CEO Anil Kumar said: “This is a plan that helps the investor save on a monthly basis accumulate and create wealth over time to meet his long-term financial goals like children’s education, retirement, among others. Additionally, the 100 times in-  surance cover assures the investor of meeting his financial planning goals in case of any unfortunate circumstances,” he added. The insurance cover offered to the investor grows with the tenure of the SIP. In the first year, the investor is eligible for insurance cover of 10 times the monthly instalment while in second year, it would in- crease to 50 times the monthly instalment.

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19)Reliance Mutual Fund has introduced a life insurance facility to investors opting for the systematic investment plan route in select 10 equity schemes. Reliance SIP Insurance Plan will be available to only unit-holders in the age group of 20-46 years, for a period rang- ing from 3-15 years or till the attainment of 55 years.

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20)Birla Sun Life Mutual Fund has extended the initial offer period  of Birla Fixed Term Plan-Half Yearly Series 4 and Birla Fixed Term Plan-Series AW to June 19 and July 7, respectively, a notice from the fund house said on Thursday.

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21)Lotus India Mutual Fund on Thursday launched Lotus India Fixed  Maturity Plan – 375 Days – Series XI. The scheme will remain open for subscription until June 25. The close-ended scheme’s corpus will be invested in fixed income securities maturing in line with its tenure.

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22)JM Financial Mutual Fund on Thursday launched JM Fixed Maturity Fund-Series X Quarterly Plan-3, a fund house official said. The offer will remain open for subscription until July 11. The 91-day, close-ended income scheme will deploy at least 65 per cent of its corpus in short- term debt and money market instruments, and up to 35 per cent in government securities falling in line with the maturity date of the plan.

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COMMODITIES

23)Gold slipped on Thursday, shedding more than 1.5 per cent at its session low, as the dollar rebounded against the euro after Wednesday’s losses,. Gold fell to $869/869.50 an ounce at 0955 GMT from $881.15/ 882.55, having earlier touched an intraday low of $867. “Gold has  been volatile, but within a relatively narrow trading range,” said Standard Bank analyst Mr Walter de Wet.

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24)Jeera futures on NCDEX gained 1.62 per cent to Rs 11,015 a quin- tal on reports of a drop in global supply. Moreover, arrivals in the domestic market declined sharply. Maize was up 1.51 per cent at Rs 940 per quintal on fresh buying interest. Castorseed rose 1.07 per cent to Rs 536 per 20 kg on shrinking arrivals and strong export demand. Cocud moved up 0.99 per cent at Rs 468 per 50 kg on strong demand from Rajasthan and Gujarat. Reports of rainfall in parts of Rajasthan and Gujarat pulled down guarseed futures by 2.6 per cent to Rs 1,722 per quintal.

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REAL ESTATE
 
25)THE Confederation of Real Estate Developers Association of India (CREDAI) has roped in the concept of Special Residential Zones (SRZs) tapping the booming real estate market. SRZ is a concept developed by CREDAI based on the market need for affordable housing in the country. Now it is under the central government consideration. Kumar Gera, Chairman CREDAI said, “the concept seeks govern- ment support and concessions for the benefit of those families who are willing to live in small home of 30 to 70 sq mtrs. The con- cept seeks the same concessions that are offered to SEZ across the country by way of exemptions from tax and duties.”

Indian Express

BUSINESS PROCESS OUTSOURCING
 
26)Their total share of the worldwide market in outsourced information technology services might be minuscle: just 2.4 per cent; but India’s top six players in this arena grew at a scorching pace that was 3 to 4 times faster in 2007 than the world average. A Gartner study released on Thursday said the BPO or Business process Outsourcing Big Six, were attracting big deals – worth $100 million or more and spread over many years.

Hindu
 
INFORMATION TECHNOLOGY

27)Wipro, the country’s third largest software provider, is bidding for 12 contracts worth a total of at least $1.2 billion to help it meet a goal of becoming one of the industry’s 10 largest companies. Wipro, based in Bangalore, formed a Global Programs Group to target such orders, Girish Paranjpe and Suresh Vaswani, the joint chief executive officers of Wipro’s information technology business, said on Wednesday.

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INTERNATIONAL

28)Oil fell nearly $3 a barrel today, reversing some of the previous session’s hefty gains that were spurred by a fall in US fuel stocks. US crude futures fell $2.90 to $133.48 a barrel by 1126 GMT, while London Brent crude dropped $2.59 to $132.43. Prices jumped more than $5 a barrel yesterday after the US government data showed a fall in crude inventories for the fourth week in a row.

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