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.

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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.

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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.

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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.

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FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd             www.karvy.com
                                               www.khojhyderabad.com
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                                               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