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

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