30 August 2009

GENERAL

1)Foreign minister Pranab Mukherjee and AEC chairman Anil Kakodkar on Friday reiterated that India would accept nothing short of a clean waiver at next week’s NSG meet. The fresh NSG draft, which the US has been diligently working on for the past few days, has not been circulated among the NSG countries. But India has maintained that the substance should remain the same.

TOI

ECONOMY

2)THE INDIAN economy grew by 7.9% in the first quarter (April-June) of the current fiscal, the slowest in the past three-and-half years. This tallies with the prime minister’s Economic Advisory Council’s growth forecast for this fiscal at 7.7%.

ET

CORPORATE / INDUSTRY

3)The government on Friday approved a total overhaul of the Omnibus Companies Act, 1956, making it far easier for boards of Indian companies to change their corporate structures without having to seek government approval. The Cabinet on Friday approved the Companies Bill, 2008, which proposes to limit the government’s role in India Inc. The Bill will now be introduced in the upcoming session of Parliament in October.

FE

4)Larsen & Toubro Ltd’s(L&T) order book as on March 31, 2008 stood at a healthy Rs 52,683 crore, of which Rs 8,736 crore was contributed by international business. This was stated by AM Naik, chairman, L&T at the company’s 63 rd AGM held in Mumbai. Despite large spending on capability building, L&T has been able to maintain a return on capital employed (ROCE) at 20.6%. Its EVA has grown by over 51% to Rs 834 crore in FY 2007-08. The company has also proposed an issue of bonus shares in the ratio of 1:1.

FE
 
5)Bharat Heavy Electricals Ltd(BHEL) on Friday said it has bagged a Rs 1,155 crore order from GVK Power for supplying and installing equipments at a power project in Punjab. “BHEL has won a Rs 1,555 crore contract from GVK Power Ltd for setting up 2×270 MW electri city generating units at Goindwal Sahib thermal power project in Punjab,” a company release said.

BL

6)Steel-pipe maker PSL Ltd is all set to diversify into development of Special Economic Zones(SEZ), with the company getting the stage-1 approval from the Centre to set up an exclusive SEZ for alternative energy and energy ancillaries at Pipavav in Gujarat.

BL

MONEY & BANKING
 
7)INDIA’S first-ever exchange-traded currency futures market got off to an impressive start on Friday, as active participation from companies, proprietary books of brokers and some retail investors ensured higher-than-expected volumes. Though the market was largely divided over the direction of the two currencies, with some punting on a stronger dollar against the rupee in the near-term, most bets were slightly biased towards a weaker US currency in the coming weeks. Dealers attribute this positive outlook on the rupee to RBI’s intervention in the currency market, when the rupee fell to 44.15 a dollar. The Indian currency finally ended the day at 43.94 to the dollar. Participants are also keeping a close watch on crude oil prices, as movement in this commodity is inversely correlated to the dollar, which means when oil falls, dollar rises and vice-versa.

ET

PENSION

8)INDIA’S pension sector has been opened up a notch wider with the New Pension Scheme(NPS) now restricted to government employees set to be extended to individuals outside the government. Finance minister P Chidambaram on Friday announced that the finance ministry had advised the pensions regulator – Pension Fund Regulatory and Development Authority (PFRDA) – to open up the scheme to private citizens also. The PFRDA will soon put in place the enabling frame- work to facilitate those working in the unorganised sector to parti- cipate in the scheme. The plan is to allow pension fund managers licensed by the PFRDA to offer schemes to individuals across the country using network of banks and other agencies to collect the subscriptions.

ET

MARKETS

9)Benchmark indices surged over 3% on Friday as bulls chose to look at the brighter side of a slowing economy. According to a government release, India’s GDP grew 7.9% in the June quarter, the slowest in three-and-a-half years, and much below the 8.8% growth rate clocked in the April quarter. This, and the slight drop in inflation to 12.4%, has raised hopes that RBI may not hve to raise interest rates soon. Still, brokers fell it is too early to say if the market is now poised for a sustained upswing. The finance minister himself said on Friday that no conclusion can be drawn from one week’s inflation numbers. Despite the 500-plus point rally in the Sensex, traded turnover on both exchanges combined was under Rs 60,000 crore, indicating the cautious mood among investors. “I don’t think inflation is fully be- hind us; the market is likely to trade in a 2000-point range on either sides for some time,” says BSE broker Ramesh S Damani. The Sensex gained 516.19 points to end the day at 14,564.53, while the broader 50-share Nifty gained 146 points to close at 4,360.

ET

10)Companies making public or rights issues now have to obtain final letters of sanction of loans for the projects or plans for which they are raising funds, going by SEBI’s clarification on its Disclosure and Investor Protection Guidelines. In the case of mega projects involving high debt component, SEBI has made an exception.

BL
 
IPO
 
11)Reforms in the primary market may witness a further thrust as capital market intermediaries get ready to implement Application Supported by Blocked Amount(ASBA) in the initial public offers(IPOs), an alternative mode of payment proposed by the Sebi. The pilot project to implement ASBA is likely to kick off from September 8 with the IPO of Gujarat-based 20 Microns, a manufacturer of white minerals, said a banker familiar with the process. 20 Microns will tap the primary markets with an IPO of 43,50,632 equity shares of Rs 10 each. The issue is slated to close on September 11.

BS

STOCK SPLIT

12)Allied Computers International(Asia) today said it will split its shares in the ratio of 1:10. The board at its meeting has approved the subdivision of one equity share of Rs 10 each into 10 equity share of Rs 1 each, Allied Computers said in a filing to the BSE.

BL

MUTUAL FUNDS

13)Motilal Oswal group on Friday said that it has received Sebi’s inprinciple approval for its mutual fund business. Its group company, Passionate Investment Management Pvt Ltd, has been granted an in- principle approval by market regulator Sebi, to set up a mutual fund business, a release said.

FE

COMMODITIES

14)Gold rose on the back of a soft dollar and firmer oil prices on Friday, hovering near its highest level in more than two weeks, with investors expecting US economic data to shed more light on the world economy. Gold firmed to $836.75/837.75 an ounce by 0954 GMT from $831.45/832.65 late in New York on Thursday.

BL

15)Pepper futures market fell on Friday on bearish operations and the September contract fell below the spot prices. September contract dropped by Rs 115 a quintal to close at Rs 13,943, much below the spot price of Rs 14,200 of MG 1. The fall in other contracts was from Rs 38 to 117 a quintal on NCDEX.

BL

REAL ESTATE

16)Online real estate portals such as People Group’s makaan.com and 99acres.com have started witnessing 6% to 12% drop in online purchases of real estate properties since July 2008. Aditya Verma, VP and business head, makaan.com told FE, “Between January to June this year, makaan.com witnessed 22% growth in online purchases. But since July, online purchases have started degrowing at the rate of 18%. This is due to a demand-supply gap for properties, apart from delays in real estate projects.” Currently, 26 million people are looking for properties. 12% of such prospective customers look for properties online. According to Verma, “In the next three years, those looking for properties online will increase to 50%. We have set aside a budget of Rs 40 crore, to be spent during the next three years, for expanding our presence online in Tier II and III cities.” There are about 3 lakh property brokers in India, of which 60,000 were booked through news- papers.

FE

HUMAN RESOURCES OUTSOURCING

17)AN INCREASING number of mid-market companies, with about 3,000-15,000 employees, are expected to adopt human resources outsourcing (HRO) in the coming years in an attempt to bring down costs and reap gains from latest technologies, says a study. Moreover, in terms of adopting HRO, these firms are projected to surpass larger corporations having 15,000 or more employees in the next few years, reveals the study conducted by Everest Research Institute, the research arm of global consulting firm Everest Group.

ET

INFORMATION TECHNOLOGY

18)Stung by the apparent anti-outsourcing overtone of Senator Barack Obama’s acceptance speech where the Democrats’ Presidential nominee pledged to halt tax sops to companies that ship jobs outside the US, the Indian IT industry on Friday said that globalisation of services was “irreversible” and argued that outsourcing had enabled US firms to stay competitive. While industry captains reacted with caution trying to decipher the underlying implications, some sought to play down the reference to outsourcing terming it as an “election rhetoric.”

BL

19)The country’s fourth largest software exporter Satyam Computer Services is on the prowl again. The Hyderabad based company has identified about four potential targets for acquisition, Satyams Chief Strategy Officer, Mr Shailesh F. Shah, said on Friday.

BL

INTERNATIONAL

20)Crude oil futures rose more than $3 a barrel Friday ahead of a holiday weekend expected to conclude with a major hurricane reaching a key US energy-producing region. Light, sweet crude for October delivery was up $2.85, or 2.5 per cent, at $118.44 a barrel on the New York Mercantile Exchange, after reaching $118.76.

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

29 August 2008

GENERAL

1)INDIA’S moon mission is getting a foreign touch with a 50-member team of scientists from the National Aeronautics and Space Adminis- tration(NASA) and the European Aeronautic Defence and Space Company(EADS) arriving in the country to provide technical support to the moon mission, Chandrayan-I.

Indian Express

ECONOMY

2)There is some respite from rapidly rising prices, finally. Annual inflation declined marginally to 12.40% for the week ended August 16,2008, from 12.63% a week ago. It’s not just the change in the price level as compared to a year ago that has come down. The absolute level of the wholesale price index(WPI), too, declined marginally, after rising for 27 weeks, suggesting some moderation in prices. However, economists have cautioned that it may be too early to say that a declining trend has set in.
 
 ET

CORPORATE / INDUSTRY

3)PRAMOD Mittal and Vinod Mittal-promoted Ispat Industries has taken steps to start iron ore mining in Brazil. It has floated a separate company – Erebus – to spearhead the Brazil venture. Ispat Industries and group company Global Steel Holdings have picked up 40% and 30% stakes respectively in Erebus. The remaining 30% will be held by a local Brazilian firm.

ET

4)MRF Ltd on Thursday announced that it has become the first domestic company to introduce tyres for helicopters and aircraft targeted particularly at the defence sector. The defence ministry has been importing these tyres so far, said KM Mammen, chairman, MRF. The tyre-maker seeks to garner a sizeable chunk of the Union defence ministry’s expenditure on tyres for helicopters and aircraft.

FE

MONEY & BANKING

5)The rupee was range-bound against the dollar on Thursday and closed marginally lower from the previous close. Most traders were cautious, after having burnt their fingers in the earlier sessions which saw volatile movement. There was genuine buying interest on Thursday, said a forex dealer with a private bank. The rupee opened at 43.68/70 and touched a high of 43.65 before closing at 43.78/79, marginally lower from the previous close of 43.76.

BL

INSURANCE

6)LIFE protection has become far more affordable. The cost of life insurance has come down by up to 40% with the Insurance Regulatory Development Authority(Irda) reducing the capital that insurance companies need to sell term policies. For the second time since liberalisation of the insurance industry in 2000, there has been a dramatic reduction in term insurance rates, which has made life protection a great deal cheaper.

ET

7)Kotak Mahindra Old Mutual Life Insurance (Kotak Life Insurance), the life insurance arm of Kotak Mahindra Bank, has announced a reduction in its term plan rates up to 40%. The rate reduction is partly as a result of the reduced solvency margin requirements laid down by Irda.

FE

MARKETS

8)As the derivatives contract for August expired on Thursday, key equity indices continued to remain volatile as selling pressure intensified in the last hour of the trading session. The 30-share Sensex of the Bombay Stock Exchange(BSE) after opening in the positive terrain, slipped in the negative on fears of high inflation and increased crude prices to end at 14,048.34 points posting a loss of 248.45 points or 1.74%. The wider S&P CNX Nifty of the National Stock Exchange(NSE) closed at 4,214 points down 78.10 points or 1.82%.

FE

9)Great Offshore surged 4.79 per cent to close at RS 480 after the company announced that its wholly owned subsidiary, Great Offshore International has taken delivery of a high-end modern anchor handling tug-cum-supply vessel.

BS

10)The Chennai-based retail broking company, Apollo Sindhoori Capital Investments (ASCIL) jumped 9.55 per cent to close at Rs 57.95 after Aditya Birla Nuvo said that its board has approved the acquisition of 56 per cent stake in the company for Rs 198.8 crore.

BS

11)More than 300 members will be eligible to participate in currency futures trading on the NSE on Friday, when the facility gets flagged off by the Union Finance Minister, Mr P Chidambaram, said a top NSE official. In order to encourage active participation in the Currency Derivative segment, the NSE has decided that no transaction charges will be levied on the trades done in this segment on the exchange from August 29 till September 30.

BL

12)Close on the heels of currency futures, exchange-traded interest rate derivatives may soon make their debut. A committee comprising the market and banking regulators is working on the final guidelines, which is expected to be unveiled by the end of January 2009.

BS

IPO

13)Three banks – Corporation bank, Union Bank of India and HDFC Bank have received SEBI nod for offering the new payment facility for IPOs under SEBI’s new scheme where investor application money will not be blocked with the IPO issuer till allotment. It also does away with the refund process. These three banks can now be part of the Applications Supported by Blocked Amount(ASBA) process.

BL

14)Delhi-based Great Eastern Energy Corporation(GEEC) is planning a public issue, part of which will be “sponsored”, meaning foreign shareholders will also tender their shares for sale, a first for the Indian markets. GEEC, a coal bed methane exploration and development company promoted by Yogendra Kumar Modi, is listed on the London Stock Exchange’s Alternative Investment Market(AIM). The issue, which is awaiting approval from the Sebi, is unique in that such sponsored issues by Indian companies(like Infosys) have so far been restricted to overseas share sales by Indian companies.

BS

MUTUAL FUNDS

15)IDFC Mutual Fund has launched an open-ended scheme IDFC Strategic Sector(50-50) Equity Fund on Thursday. The fund will invest up to 50 per cent of its assets in a chosen sector that is positioned for high returns, while the balance amount may be invested in companies across market capitalisations and across sectors, a news release from the company said. This scheme may also invest in debt and money market instruments. This fund will be benchmarked against the Nifty. The fund will close for subscription on September 18.
 
BL

16)SBI Mutual Fund will launch a 90-day fixed maturity plan on Friday, the fund house said in a notice. SBI Debt Fund Series- 90 Days Fund-29 will close for subscription on Monday.

BS

CORPORATE SCORE

17)Leading paper manufacturer Ballapur Industries Ltd (Bilt) on Thursday reported a 5.13% rise in its net profit at Rs 73.07 crore for the fourth quarter ended June 30 as compared to Rs 69.50 crore during the same period last year. The company’s revenue for the quarter went up by 16.60% at Rs 793.20 crore as against Rs 680.26 crore during the corresponding quarter last year.

FE

COMMODITIES

18)Gold prices climbed in Europe on Thursday, tracking oil higher and supported by a recovery in the euro against the dollar. Strong physical demand after gold’s recent sharp price fall also helped keep prices over $830 an ounce, although the precious metal is struggling to overcome technical resistance to break much higher. Gold firmed to $832.30/833.30 an ounce at 0953 GMT from $826.05/827.45 an ounce late in New York on Wednesday, having hit an intraday high of $836.40 an ounce.

BL

19)Continuing its bullish trend, turmeric futures in NCDEX on Thursday gained 3.39 per cent to Rs 3,840 a quintal on positive signals from the spot market in Nizamabad. Barley was up 2.38 per cent at Rs 1,200 a quintal on firm prices in the Jaipur spot market coupled with fresh buying at lower levels. Maize jumped 2.64 per cent at Rs 990 a quintal on higher minimum support price proposed by the Government. Sugar rose 0.68 per cent at Rs 1,766 a quintal on increased buying interest.

BL

20)Gold and silver prices continued to rule firm for the second straight day on the bullion market on Thursday on persistent demand from stockists in view of fast approaching festival season coupled with positive global advices. Standard gold(99.5 purity) firmed up by Rs 40 per ten gm to Rs 11,935 from Rs 11,895 and pure gold(99.9 purity) also looked up by Rs 30 per ten gm to Rs 12,000 from Rs 11,970. Silver ready (.999 fineness) was also quoted higher at Rs 21,280 against Rs 21,160 a rise of Rs 120 per kg.

BL

REAL ESTATE

21)REAL ESTATE firm Shriram Properties, part of the Chennai-based Shriram Group, proposes to float a separate division to develop malls for which it plans to spend over Rs 3,500 crore over 4 years. The company has identified Kolkata, Chennai and Visakhapatnam – where it has ongoing mixed-use projects – for mall development in the first phase.

ET
 
INFORMATION TECHNOLOGY

22)Indian software firm, Tech Mahindra on Thursday said that it would acquire a stake of 17.28% in European systems integrator, Servista for an undisclosed amount and would be the latter’s delivery arm for a period of three years. Private equity firms HarbourVest Partners and Arts Alliance hold major stake of the privately held company, Servista.

FE

23)Wipro Ltd, India’s third-largest computer-services provider, may buy a German competitor that advises companies running business software made by SAP AG. The company will have sales of about $100 million to $200 million, Azim Premji, chairman, Wipro said.

FE

24)Bracing up to counter the US slowdown effect, Cognizant Technology Solutions is further expanding its presence in India. The company, which is targeting around 10-15 per cent of its revenue to come from outside the US and European markets in the next two to three years, will invest approximately $46 million(Rs 201 crore) to further expand its infrastructure in Kolkata.

BS

INTERNATIONAL

25)OIL rose towards $120 a barrel on Thursday, its fourth day of gains, boosted by the threat of damage to US oil installations from tropical storm Gustav. The storm is forecast to regain hurricane status as it approaches the Gulf of Mexico, home to a quarter of US crude oil pro- duction and 15% of its natural gas output.

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

28 August 2008

GENERAL

1)Jharkhand Mukti Morcha (JMM) president Shibu Soren was on Wednesday sworn in as the sixth Chief Minister of the State that was formed eight years ago. Mr.Soren(64) was sworn in along with 11 ministers at the historic Morahbadi ground. This is the third government in the State in three years of tenure of the present House that ends in March 2010.
 
Hindu

CORPORATE / INDUSTRY

2)MAHINDRA & Mahindra is sniffing around for deals but this time it’s in the two-wheeler segment. The utility and tractor major, which recently picked up Kinetic’s two-wheeler business for Rs 120 crore, is reportedly in talks with Italian motorcycle and scooter maker Malaguti Moto for a possible takeover.

ET

MONEY & BANKING

3)The rupee gained by around 10 paise against the greenback due to dollar selling by banks. The domestic currency opened at 43.70/72 and weakened to touch an intra-day low 43.90/91. It recovered to close at 43.76, against the previous close of 43.85/86.

BL

4)Banks, which had taken membership to trade in currency futures on the National Stock Exchange, are trying to complete all formalities before the launch on Friday. State Bank of India, ICICI Bank, Axis Bank and Union Bank have already taken membership to trade on NSE, the first exchange to launch currency derivatives.

BS

MARKETS
 
5)BENCHMARK indices shed more than 1% on Wednesday, a day ahead of the derivative contracts expiry, as it is widely felt that most traders holding long positions are not keen to roll them forward to the next series. Lack of positive triggers – both at the local and international level-is keeping bulls on the backfoot, say brokers. Adding to the gloomy outlook, the 50-share Nifty slipped below the psychological 4,300-mark to close at 4,292.10, down 45 points over its earlier close. The 30-share Sensex fell 185.43 points to end the day at 14,296.79, down 1.3% over its previous close. Equities started off on a firm note, but were unable to hold on to their initial gains due to the indifferent trend in key Asian markets.

ET

6)Morgan Stanley hopes to invest up to a quarter($ 1 billion) of its $4 billion global infrastructure fund in emerging economies such as China and India, according to senior executive. Gautam Bhandari, who was named as the head of Morgan Stanley Infrastructure in India, West Asia and sub-Saharan Africa on Tuesday, said he saw opportunities in Indian transport, energy and telecom infrastructure.

BS

7)More relief may be around the corner for companies making public issues. After unveiling the twin measures of easing the pricing norms for qualified institutional placements(QIPs) and collapsing the rights issue timelines, market regulator Sebi is considering lowering the market capitalisation threshold for fast-track issuances by companies to make such issues easier to execute.

FE

8)AFTER a gap of six years, Indian Oil Corporation(IOC) has tapped the bond market to raise term money at a fixed rate of 11% for 10 years and 11.15% for three years. Sources said that IOC had last raised money from the bond market in 2002. The issue size is Rs 300 crore but the company can accept higher subscription under the greenshoe option.

ET

RIGHTS ISSUE

9)Travel and financial services provider Thomas Cook India today said it will raise up to Rs 200 crore through issue of equity shares to its existing shareholders on rights basis for meeting the various corporate expenditures of the company.

BS

MUTUAL FUNDS

10)The Sebi Mutual Fund Advisory Committee met for the first time since its formation last week, to put reforms in the mutual fund industry on track. The committee discussed various issues related to the MF industry, including variable distribution commissions and a transparent fee system for financial planners. The panel also discussed the progress of the move to stop the nexus between fund houses and large companies and HNIs in liquid-plus funds.

FE

11)THE promise of steady returns amid an overall climate of uncertainty is drawing hordes of investors towards fixed maturity plans(FMPs) offered by mutual fund houses. With rising interest rates, FMPs are clearly the flavour of the season. These schemes have made an unprecedented collections this season, which according to some fund managers, is in excess of over a lakh crore rupees.

ET

12)ICICI Prudential Mutual Fund, the joint venture asset management company, expects its assets under management(AUM) to cross the Rs 1,00,000-crore mark by the end of the current financial year with increased focus on debt funds and the retail market. At the end of 2007-08, the AUM was Rs 60,000 crore.

BS

13)Tarus Mutual Fund, one of the oldest mutual funds in the country, is planning a major comeback. Taurus Mutual has, in its portfolio, the second oldest mutual fund schemes in the private sector that of ‘Taurus Star Share’ which was launched 14 years ago. The oldest scheme being that of Morgan Stanley Growth fund. Mr Waqar Naqvi, who has recently taken over as Chief Executive of Taurus Asset Man- agement Company said earlier the promoters of the company were not all that focussed. “Now, we have set up an ambitious plan. We are expanding the number of offices, employing more people. We will come up with a slew of new products,” he said.

BL

14)Edelweiss Mutual Fund will enter the market with two debt products in September. The fund house said it would be launching a liquid fund and a liquid-plus fund, both open-ended. The schemes will open for subscription from September 1 and closes on September 8. They will re-open on September 11.

BL

COMMODITIES

15)”The ban on futures trading in four commodities has affected the farmers in discovering price for their products,” said BC Khatua, chairman of Forward Markets Commission. Khatua said, “There is no evidence that the futures trading has escalated prices of commodities,” He said that the FMC has commissioned a study through the Indian Institute of Management(IIM) professionals on futures trading in commodities. The study revealed that the futures trading is no way connected to price escalation.

FE

16)Gold prices rose in Europe on Wednesday, tracking gains in oil, as the dollar retreated from the six-month high it hit in the previous session. Traders are awaiting a spate of US and European economic data due out later in the day for its impact on the currency markets, and consequently on gold. The US will also release its weekly oil inventory report, which could impact crude. Gold rose to $830.20/ 831.20 an ounce at 0840 GMT from $822.90/824.30 an ounce late in New York on Tuesday.

BL

17)Pepper futures market after witnessing high volatility on Wednesday closed marginally higher. On NCDEX, September contract moved up by Rs 40 a quintal to close at Rs 14,016, far below the MG 1 spot price of Rs 14,200 a quintal. The rise in other contracts except February was from Rs 24 to Rs 58 a quintal. February dropped by Rs 68 a quintal.

BL

18)Gold prices on Wednesday rose by Rs 70 to breach the psychological Rs 12,000-level on the bullion market on heavy buying triggered by firm global trends. The precious metal added Rs 70 to close at Rs 12,030 per 10 grams, while silver jumped by Rs 180 to settle at Rs 20,930 per kg on increased demand. Buying activity picked up as gold firmed up in global markets, marketmen said.

ET

REAL ESTATE

19)GRAPPLING with a slump in the property market, Indian realty players are trying to diversify into new growth areas such as power, telecom, entertainment, aluminium, cement and steel. DLF, Omaxe, Parsvnath, HDIL, Unitech, Akruti City and Mantri Realty have either initiated or announced plans on the new ventures.

ET

20)ISRAELI real estate developer Elbit Imaging(EI) has signed a joint venture agreement with UK property firm Plaza Centers, a leading emerging markets property firm, to develop the former’s three mix- use real estate projects in India. Plaza has real estate operations in central and eastern Europe and in India.

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INFORMATION TECHNOLOGY

21)BRITISH Telecom (BT) may be contemplating an exit from Tech Mahindra. The largest telecom company in the UK may sell all or part of its 31% stake in the telecom software services company, according to the Financial Times. There is, however, no clarity on whether any transaction is imminent. An industry official familiar with the development said it was premature to talk about BT’s exit.

ET

INTERNATIONAL

22)OIL prices rose to above $117 a barrel in Asia Wednesday on concerns that tropical storm Gustav may disrupt operations in the Gulf of Mexico, home to a quarter of US crude production. Light, sweet crude for October delivery was up 90 cents at $117.17 a barrel in electronic trading on the New York Mercantile Exchange by mid afternoon in Singapore.

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

27 August 2008

GENERAL

1)As India and the U.S. started redrafting the text of the NSG waiver, Washington has said it was working in a focussed manner to push the process with an aim to concluding the civilian nuclear deal by early next month.

Hindu

CORPORATE / INDUSTRY

2)ONGC Videsh(OVL), the foreign investment arm of the country’s largest exploration company, ONGC, on Tuesday put in a formal bid to acquire UK-based oil firm Imperial Energy at 1,250 pence per share. Imperial Energy, with assets in the Russian Federation and CIS countries, is valued at $2.58 billion at the bid price. The Imperial Energy board has accepted the cash offer and has re- commended the bid to its shareholders.

ET

3)State-owned Bharat Heavy Electricals Ltd(BHEL) announced on Tuesday it had won a contract for export of two gas turbine generating units worth Rs 140 crore in the United Arab Emirates. The order, from International Energy Resources, is for two units of 42 MW each, BHEL said in a statement. With this, BHEL has been able to secure orders for six gas turbine.

BL

4)Cairn India’s Rajasthan fields will pump over 16 per cent more oil at 175,000 barrels per day and will contribute over one-fifth of the country’s current domestic oil output, when it commences production in the second half of 2009.

BS

5)TUBE Investments of India(TII), an arm of the $2.4 billion Murugappa Group, is betting big on high-tech two-wheelers. As part of this plan, the company is planning to launch a two-wheeler run on alter- native fuel by April next year. An e-scooter from its stable under the BSA brand will also hit the market by October this year.

ET

MONEY & BANKING

6)A strong demand for dollars from importers, including the three public sector oil marketing companies, pushed the rupee below the 44- mark after a gap of 17 months. The rupee opened at 43.93 and within minutes breached the 44-mark on bunching of demand for dollars. The currency hit a low of 44.15/17 during the day before ending at 43.85. The rupee strengthened towards the close of trading due to sale of green back by the Reserve Bank of India, according to foreign currency dealers.

BS

7)For the first time, private sector banks have witnessed a decline in fee-based income, while public sector banks improved their per- formance in this segment in Q1. Fee-based income of 26 public sector banks(PSBs) rose by 31.5% to Rs 7,031 crore during Q1 ’08, where- as the fee-based income of 17 private banks decreased by 1.6% during the same period.

FE

INSURANCE

8)INSURANCE companies may soon be allowed to raise capital through several means which are normally used by commercial banks. The government is considering an amendment in the insurance law for allowing insurers to have hybrid capital. This would help the insurers meet their expansion plans while fulfilling solvency norms. The new norms would be applicable for both public and private insurers.

ET

9)Private sector life insurer, Max New York Life Insurance, has unveiled its new brand positioning. The new tagline ‘Karo zyaada ka iraada’ has been coined to represent an ambitious and assertive India that is ready to compete for more, demand more, dream more, and live more to create a better today and brighter tomorrow.

FE

MARKETS

10)After opening on a negative gap on the back of weak global cues, key equity indices remained volatile on Tuesday ahead of the expiry of derivatives contract for the month of August. The 30-share Sensex of the Bombay Stock Exchange(BSE), after toggling in the range of 225 points, ended the day at 14,482.22 points posting a marginal gain of 31.87 points or 0.22%. The wider S&P CNX Nifty of the National Stock Exchange(NSE) ended the day with a gain of 2.15 points or 0.05% to close at 4,337.50 points. Baring metal, realty, oil and gas sectoral indices, other indices ended the day in the positive terrain. Markets will trade in a range at least ahead of the settlement of the August contract, experts said.

FE

11)THE maker of auto-components, Bosch was th highest gainer in the Group A pack, rising 13.61 per cent to close at Rs 4,147.55 on share buyback plans. The company made the announcement after market hours on August 25. The Bangalore-based company’s board will meet on September 2 to consider the matter.

BS

12)The shares of domestic appliance manufacturers, TTK Prestige were locked at the 20 per cent upper circuit to close at Rs 158.55 after the company announced that its board will meet on September 1 to consider delisting of shares from the BSE and NSE.

BS

13)A weakening rupee pushed up information technology (IT) stocks on Tuesday. The BSE IT index closed up 0.86 per cent from its previous close. The IT index has climbed 7.87 per cent from a month ago and 0.08 per cent over the past week.

BL

MUTUAL FUNDS

14)The mutual fund industry has proposed that the market regulator allow them to offer insurance cover to investors along with their regular schemes. Association of Mutual Funds of India Chairman A P Kurian said mutual funds should be allowed to sell insurance cover by tying up with insurance companies. According to the proposal, the insurance premium under these schemes would be collected separately.

BS

15)Edelweiss has launched an asset management company(AMC), taking the total tally of mutual fund houses in the country to 35. ASK Group also is setting up an AMC soon, and has applied to the Sebi for the same. The newly-formed Bharti AXA Mutual Fund has launched a liquid fund in the debt segment, and will offer a equity fund in the first week of September. The fund house has a daily systematic investment plan (SIP) in which the investors can park an amount as low as Rs 100 on a day.

FE

16)AIG Mutual Fund on Tuesday launched AIG Quarterly Interval Fund Series-II. The close-ended scheme will remain open for subscriptions until Wednesday. The scheme, which will deploy its entire corpus in debt and money market instruments, will open for fresh purchases and redemption once every quarter.

BS

17)Principal Infrastructure & Services Industries Fund has been renamed Principal Services Industries Fund with immediate effect. The open-ended equity plan will now deploy at least 70 per cent of the corpus in equity and equity-related instruments of firms engaged in the service industry.

BS

COMMODITIES

18)Amid rising business at commodity exchanges, the Forward Markets Commission is hopeful that futures trading in rubber, soya oil, potato and gram (chana) would resume from September. The four month suspension of futures trading in these four commodities imposed in May ends on September 6. “Iam hopeful that suspension on four commodities will not be extended. We have already sent a detailed report to the government explaning the situation,” FMC chairman B C Khatua said.

FE

19)Gold and silver declined further on the bullion market on Tuesday after persistent offerings by stockists. Standard gold(99.5 purity) fell by Rs 95 per ten gm to Rs 11,695 from Rs 11,790 and pure gold (99.9 purity) also slipped by Rs 90 per ten gm to Rs 11,765 from Rs 11,855. Silver ready(.999 fineness) was also quoted lower at Rs 20,865 against Rs 20,995, a loss of Rs 130 per kg.

BL

20)GOLD prices which have fallen sharply in the last few weeks due to a strong dollar, are expected to dip further, offering good buying opportunities. Traders believe that physical demand for gold would continue to be robust due to the upcoming festival season. The pre- sent shortage in supply is expected to lend slight support to the market. However, since currency traders expect the strengthening of the dollar to continue over the next three to four quarters, a rise in gold prices looks very unlikely.

ET

REAL ESTATE
 
21)The largest real estate company by market share DLF Ltd is planning to raise Rs 10,000 crore over the next one year. The share- holders will pass an enabling resolution to this effect in the next annual general meeting which will be held on September 30.

FE

22)INDIA’S retirement homes market is set for its first cross-border play with Brisbane-based Renaissance Retirement Living(RRL) striking an equal joint venture with real estate development manager Asipac Projects to set up nine villages for seniors in the southern and western states. The JV firm, Nuvida Hospitality, will invest $84 million over four years to set up a chain of lifestyle retirement resorts, with the first three projects scheduled to come up in Bangalore, Pune and Hyderabad. Each of these projects will be FDI-compliant with at least a 25-acre campus or a minimum of 50,000 sq metres of development. This is the first international participating in the domestic retirement home segment that is dominated by co- operative efforts.

ET
 
INFORMATION TECHNOLOGY

23)AS Infosys Technologies breaks its shackles of conservatism on acquisitions with a proposed $753-million buyout of the UK’s Axon Group, the development may spur similar deals by the biggies of the Indian IT services industry in the months to come, according to analysts. Though the deal by Infosys is not one of game-changing magnitude, it comes at a time when the Indian IT industry has been concerned about a slowdown in growth.

ET

24)Tata Consultancy Services has bagged a five-year multi-million-dollar contract from Singapore Airlines Cargo. As per the agreement, SIA Cargo has outsourced its cargo revenue accounting processes to TCS.

BL

INTERNATIONAL

25)Crude oil rose on forecasts showing that Hurricane Gustav may enter the Gulf of Mexico. Crude oil for October delivery rose 89 cents, or 0.8 per cent, to $116 a barrel at 9:03 a.m. on the New York Mercantile Exchange.

BS

26)HEWLETT-Packard, the computer and printer maker, said on Tuesday it closed the $13.9 billion purchase of Electronic Data Systems, a deal that HP hopes will help it better compete with IBM. The company said it would further discuss its plans for EDS during a meeting with analysts on September 15.

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

26 August 2008

GENERAL

1)Plans are afoot to bowl out Melbourne and Eden Garden cricket Stadiums. The world’s largest cricket stadium is all set to come up near Chennai in time for World Cup 2011, which India will co-host with Pakistan, Bangladesh and Sri Lanka.

TOI

ECONOMY

2)Foreign direct investment (FDI) inflows are likely to expand by 62.8 per cent in 2008-09 to $40 billion, as against $24.57 billion in the last financial year as the services sector is expected to attract a major chunk of foreign investments.

BS

CORPORATE / INDUSTRY

3)Kanoria Chemicals and Industries may set up a separate company for its proposed foray into Mozambique for manufacturing caustic soda and other alkalies, collectively referred to as chloro chemicals or chlor alkalies, Chairman and Managing Director RV Kanoria said today.

BS

MONEY & BANKING

4)The rupee fell by about 35 paise against the dollar, due to heavy buying by corporates and oil companies. All foreign banks were seen buying dollars, said a forex dealer with a private bank. There could also be month-end demand, he added. The rupee opened at 43.45/46 and closed at 43.77/78, against the previous close of 43.42/43.

BL

5)IDBI Bank on Monday hiked interest rates on deposits across various tenures by upto 0.75% with immediate effect. Deposits having a maturity of 1-2 years upto Rs 15 lakh will now carry an interest rate of 10% while those above Rs 15 lakh will attract 10.25% as against 9.5% earlier, the bank said in a statement.

FE

INSURANCE

6)SBI Life Insurance has become the first Indian life insurance firm to feature among the world’s top three in the million dollar round table(MDRT), a grouping of the world’s top life insurance advisors. During 2007, the number of SBI Life advisors, or agents, in MDRT more than doubled to 1,662 from 801 in 2006. SBI Life was ranked fifth in the MDRT league in 2006.

ET

7)ICICI Prudential Life has introduced e-portfolio statement for consumers. It will provide consumers with a customised e-statement with their investment details on a monthly basis. The statement will provide the customer a detailed summary of all his ULIP policies with the company. It will also give the policyholder a fund-wise break up of investments in the company’s equity and debt funds.

FE

MARKETS

8)Despite opening the day on optimistic note on the back of positive global cues and easing crude prices, key equity indices ended the day on a flat note. The 30-share Sensex of BSE gained 48.86 points or 0.34% before finally closing the day at 14,450.35 points. While S&P CNX Nifty of NSE added 7.90 points or 0.18% before ending the day at 4,335.35 points.

FE

9)Global rating agency Standard & Poor’s on Monday launched the S&P India Select Index, comprising 60 leading Indian companies across diverse sectors like telecommunications, consumer staples, utilities, financials, energy, materials, industrials, IT and health care. The top 10 holdings by percentage of index weight are Infosys Technologies, Bharti Airtel, ONGC, RCOM, HDFC, RIL, ICICI Bank, Hindustan Lever, Bhel and L&T.

ET

10)FINANCE minister P Chidambaram will have a packed schedule when he visits the financial capital on Friday. To start with, he will inaugurate trading in currency futures on the National Stock Ex- change(NSE). NSE has managed to gain the first mover advantage by being the first exchange to receive the mandatory approval from the Sebi.

ET

11)The Multi-Commodity Exchange(MCX) on Monday received in-principle approval from the market regulator Sebi for launching currency futures through its newly-formed subsidiary MCX Stock Exchange Ltd(MSEL). MSEL will commence enrolment drive for membership from Tuesday as it has already conducted seven road shows.

BL

MUTUAL FUNDS

12)SEBI’s decision to waive entry load for investors approaching mutual fund houses directly instead of going through distributors, has evoked a tepid response so far. Eight months since the waiver has been introduced, most investors prefer to go through distributors while investing in fund schemes. There has been only 1-2% rise in customers approaching AMCs directly for investing in funds, officials at fund houses said.

ET

13)Domestic diversified equity schemes investing in the Indian stock market have outperformed global funds in one-month returns from July 22 to August 22 as Indian indices showed uptrend compared with its global peers.

BS
 
14)Deutsche Asset Management (India) said on Monday it has extended the closing date of Deutsche Fixed Term Fund-Series 59 till September 4. The two-year close-end fixed income fund was earlier scheduled to close for subscription on August 27.

BL

COMMODITIES

15)The combined trade of India’s commodity bourses rose 42% to Rs 18.81 lakh crore from April 1 to August 14, versus the same period in 2007, data from the regulator Forward Markets Commission (FMC) showed. The turnover rose 55.5% to Rs 2.27 lakh crore in the fort-night ending August 14 from Rs 1.46 lakh crore, data showed. Active trade was seen in gold, crude oil, silver and copper in the energy metals sector during the fortnight period. Guar seed, rapeseed, soybean, turmeric and jeera saw maximum trade among agriculture commodities.

FE

16)Both the precious metals, silver and gold, receded marginally on the bullion market on Monday, owing to sluggish demand amid rebound in equity market, shifting most of the funds from bullion to stocks. Gold softened by Rs five to Rs 11,910 per 10 gram. In a similar fashion, silver declined by Rs 50 to Rs 20,500 per kg. Gold prices in Hong Kong fell to $820.30 an ounce from Thursday’s close of $822.

DC

REAL ESTATE

17)HYDERABAD-based realty developer Aliens Group is looking at setting up an SEZ near the new international airport in Hyderabad. This would mark the group’s entry into large commercial and mixed space development. As the company is engaged in over four projects in the city, it may also look at spinning off a separate special purpose vehicle(SPV) to raise equity from investors.

ET

18)Provident Housing and Infrastructure Ltd, the wholly-owned subsidiary of Bangalore-based real estate company Puravankara Projects Ltd, is in talks with four overseas private equity funds to raise about Rs 750 crore to acquire land for its affordable housing projects, a source close to the development said.

BS

INFORMATION TECHNOLOGY

19)INFOSYS, a declared suitor in the market for a long time now, has finally found a match. The company is set to acquire UK-based Axon Group, a SAP consulting services company listed on the London Stock Exchange, for about $753 million(407.1 millon pounds) in an all-cash deal. This will be the biggest overseas buyout by an Indian IT company, eclipsing cross-town rival Wipro’s $600 million acquisition of Infocrossing last year.

ET

20)HCL Technologies on Monday announced it has signed an agreement to acquire Control Point Solutions, a provider of voice, data and wireless Telecommunications Expense Management (TEM) services, with the enterprise valuation pegged at $20.8 million.

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

25 August 2008

GENERAL

1)With the NSG draft set to be amended because of demands from some member-countries, the government on Sunday held a high-level meeting to analyse the new development and discuss options available to it. External affairs minister Pranab Mukherjee held a hour-long discus- sions with the Prime Minister’s special envoy on nuclear deal Shyam Saran and senior officials of the ministry of external affairs and department of atomic energy on the issue in New Delhi.

TOI

ECONOMY

2)Planning Commission deputy chairman Montek Singh Ahluwalia has said he expects the country’s GDP growth to be at around 8-8.5% for the year. “The Economic Advisory Council to be at 7-7.8%, whereas the Centre for Monitoring of Indian Economy has pegged it to be over 9%. Hence I see the GDP growth to be at around 8-8.5%,” he said.

FE

3)Cashing in on the realty boom, the Rail Land Development Authority (RLDA) is all set to go ahead with its plans to lease surplus land for commercial development-a project which is estimated to generate revenues of over Rs 4,000 crore in 2008-09.

FE

CORPORATE / INDUSTRY

4)ICICI Ventures-controlled Ranbaxy Fine Chemicals(RFCL) has emerged as a strong contender to buy the speciality chemicals business of Mallinckrodt Baker, a division of healthcare giant Covidien, in a deal which could be valued at around $450 million, industry sources said. This comes after speculation that RFCL was on the trail of a large US acquisition. If the transaction goes through it would be the biggest overseas M&A play for ICICI Ventures, which acquired RFCL about four years back from Ranbaxy Labs for Rs 125 crore.

ET

5)India’s power sector has cornered a lion’s share in the Rs 633,906 crore investment announced by corporates during January-June 2008, industry body Assocham said. Of the investments tracked by the industry body during the first half of calendar year 2008, the energy sector attracted 18.64% at Rs 195,913 crore. Power majors like Tata Power, Sterlite Industries, Jindal India Thermal Power and Lanco Group are among the corporates that have lined up big investments in the sector. The other major sectors attracting huge investments included real estate, steel, retail and telecom.

FE
 
MONEY & BANKING

6)THE managements of state-owned banks have told the finance ministry that they favour a reduction in the equity stake held by the government in their banks to 26%. The chiefs of major state-owned banks are of the view that by lowering the stake to 26%, the government could fulfil two major objectives. One, the move would help provide a lot of headroom for banks to raise capital. Some banks are hobbled in terms of raising capital to grow their business since a fresh public offering will lead to a dilution of the government’s equity below 51%. The current legislation governing ownership of these banks makes it mandatory for the government to maintain equity holding of at least 51%. Secondly, the government the dominant shareholder in these bank – and also SBI, the biggest lender in the country, can continue to protect their interests with the lower equity threshold. This is because the Companies Act empowers a shareholder with 26% voting rights to block any special resolution.

ET

7)As the spectre of large-scale delinquencies has come to haunt the banking industry in the high interest rate regime, public sector banks have swung into action to prepare counter-strategies to tackle a possible crisis. The banks, which have seen pressure on standard assets in recent times, have become proactive in putting in place various systems to identify accounts that could turn NPA. It is based on the premise that no accounts can turn NPA overnight but takes a certain time to turn sticky. The bankers believe, with proper systems, the non-performing assets can be minimised.

FE

INSURANCE

8)Insurance companies will now have more investment options to choose from. After a two-year wait, Insurance Regulatory and Development Authority(Irda) has notified new investment norms that provide more flexibility to insurance companies for parking funds in debt instruments offered by banks and allows more money to flow into initial public offers(IPOs).

BS

MARKETS

9)EXTENDED uncertainty over the direction in global crude oil prices in the near-term may keep Indian equities volatile this week. With the chances of more monetary tightening measures by RBI increasing, and inflation rising to a 16-year high, the market undertone is nervous. Analysts said the government’s increased desperation to bring down inflation before the general election in May next year could trigger monetary tightening measures that could be more than desirable.

ET

10)Trade body Confederation of Indian Industry (CII) has opposed the levy of securities transaction tax(STT) on foreign currency futures, whose trading will start on stock exchanges for the first time in India on August 29. Currently, all market transactions on stock ex- changes are subject to a STT of Rs 17 per Rs 1 lakh.

BS

IPO

11)Lavasa Corporation, an HCC Group Company which is developing a hill station spread over 12,500 acres near Pune, is planning to raise further funds for the project through an initial public offering (IPO). The funds to be raised through the IPO would be to the tune of Rs 2,000 crore, or 10% of the total valuation of Lavasa City, which is pegged at Rs 20,000 crore, Rajgopal Nogja, president Lavasa Corporation told FE.

FE

MUTUAL FUNDS

12)State-run Union Bank of India expects to launch its mutual fund business by January next year and is currently working on the share- holders agreement for its proposed joint venture with Belgium-based partner KBC Asset Management NV, a top bank official said.

BL

13)Principal Mutual Fund on Friday said it has mobilised around Rs 834 crore in its recently closed new fund offer Principal PNB Fixed Maturity Plan-30 days Series I. The 30-day scheme, which has two investment plans – regular and institutional – was open for subscription only on August 20,2008, the company said in a press release.

BL

COMMODITIES

14)Except gold futures, crude oil, silver and copper futures on the national bourses turned higher on week ended on Friday mainly following the firm trend in the overseas markets. Gold futures on MCX finally settled marginally higher following strong crude oil prices. Crude oil spot in the US stayed below $120 per barrel on Friday. The bulls came back with a vengeance in the oil market in the last week, as crude oil prices closed above $121 a barrel on Thursday for the first time in two weeks. While the London gold spot was quoted at $825 per ounce. In the last week gold futures closed at their highest level in almost two weeks, lifted by the dollar’s fall against other major currencies and the strength in oil prices amid rekindled fears about the financial sector. The silver September contracts were up 6.13% to trade at Rs 20,262 per kg over the previous week. Total volume was down to 401 tonne from 507 over the previous week. Open interest was also down from 295 tonnes to 275 tonne.

FE

15)The National Commodity and Derivatives Exchange(NCDEX) is planning to launch futures trading in thermal coal by September 10, the exchange’s Chief Business Officer Unopam Kausik said on Saturday. Initally, the exchange plans to introduce a contract lot size of 100 tonnes and the trading centre will be in Nagpur, Maharashtra, he said.

BS

16)National Commodity and Derivatives Exchange(NCDEX) will soon introduce non-dematerialised form of commodity trading in the country. The new system will bring down transaction costs for participants in commodity trading, Mr R Ramaseshan, MD and CEO, NCDEX Ltd, said.

BL

REAL ESTATE
 
17)At a time when the domestic demand for houses and flats has slowed down, the NRI investment in real estates is showing an upward trend. In past six months, the NRI investment has grown between 10 and 25 per cent over the previous six months, according to real estate experts.

BL

18)Property development firm Alliance Group has announced the formation of a subsidiary – Capital Land Assets(CLA)-to develop premium residential layouts. “CLA will shortly commence work on a 30-acre layout in Mysore, near the Infosys campus. An additional 15 acres at the same location will be used to develop 100 premium villas,” CMD Manoj Namburu said. CLA proposes to sell villas of 2,400-4,000 sq ft at between Rs 70 lakh and Rs 1.25 crore each. Plots with a similar area will be priced in the range of Rs 24 lakh – Rs 40 lakh.

ET

19)The Gujarat-based Labh Homemakers is planning to invest Rs 200 crore in the realty sector in Kochi in a couple of years. The company’s realty venture in the state called Green City Heritage has begum construction of its first project in Kochi. The project will have 221 apartments.

ET

COMMUNICATIONS
 
20)NEW telecom operators seem to be feeling the heat because of the government go-ahead for foreign players to bid for 3G spectrum. The valuations of Essar-owned Loop Telecom, Videocon group’s Datacom Solutions and Unitech Wireless may suffer as most foreign operators are now mulling bidding for 3G spectrum and roping in a minority Indian partner as against picking up a stake in these new licenses.

ET
 
INFORMATION TECHNOLOGY

21)SATYAM, Wipro, Infosys, TCS, Cognizant and HCL Technologies – the Big 6 or acronymed as SWITCH by many – have not seen any new member in their league in the last two years and it looks like they will continue to dominate the club some more time. The gap between these six and those who have not yet touched the magical $1-billion mark is quite wide with no signs of narrowing down.

ET

22)With a view to enhance its global footprint, IT major Zensar Technologies is scouting for acquisitions in Germany or Switzerland and hopes to seal a deal by end-this fiscal, a top company official said.

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

23 August 2008

GENERAL

1)THE Nuclear Suppliers Group ended its two-day meeting in Vienna on Friday without reaching a conclusion on waiving its tough conditions on nuclear commerce with India. The NSG will meet again early next month to take up India’s case. The United States is expected to ask India to compromise a bit on its stand that it will not accept an NSG waiver with strings attached.

Indian Express
 
ECONOMY

2)RISING inflation rate which stood at 12.63% for the week ending August 9,2008 is still a concern, but efforts were on to cool prices through monetary measures and improving supplies, finance minis- try sources said. And, the ‘base effect’ which is one of the main culprit responsible for this rise will subside only after October.

ET
 
CORPORATE / INDUSTRY

3)Lanco Infratech is set to foray into solar modules manufacturing and solar power generation with significant investments. A special purpose vehicle is being formed for this purpose. The company is already into wind energy equipment manufacturing.

BL

4)Private equity firms have joined the race to acquire Star India’s stake in Balaji Telefilms. New Silk Route, 3i and Kotak are in talks with the television production house to buy 26% stake, which was originally held by Star India. The promoters will now have to buy back the 25.90% at Rs 199 per share within the timeframe of 240 days. “No final decision has been taken yet. We are not in a position to comment,” Balaji Telefilms CEO R Karthik said.

ET

5)Mumbai-based BSEL Infrastructure Realty will develop a high-rise residential apartment complex in Malaysia. The company has been awarded a nine-storey waterfront shopping mall on 4.63 lakh sq ft of property for Rs 87 crore by the Iskandar Regional Development Authority, which is developing the Iskandar metropolis.

MONEY & BANKING
 
6)The Indian rupee gathered strength for the second day in a row on Friday as a result of the foreign investment flow and rising stock makets. The rupee ended at 43.42 to a dollar, off an intraday high of 43.30, but 0.2 per cent stronger than yesterday’s close of 43.51-52.
 
BS

7)The Reserve Bank of India has asked banks to launch a special drive to find the whereabouts of customers or legal heirs in respect of existing accounts, which have already been transferred to the separate ledger of ‘inoperative accounts’. “Banks should make an annual review of accounts in which there are no operations, like no credit or debit, other than crediting of period interest or debiting of services charges, for more than one year.

FE
 
MARKETS

8)KEY indices posted decent gains on Friday, but the near-term outlook remains cautious in the absence of any fresh triggers. Bulls took heart from the steady trend in European markets, though overall trading volumes remained thin. With Friday’s rise, benchmark indi- ces have managed to restrict their weekly loss to a little over 2%. “Activity in banking and metal counters helped trigger the rise. We feel oil(crude) will once again take a battering and the market will remain range-bound between 4250-4500,” said Prabhudas Lilladher head of institutional sales Rahul Jain. The 30-share Sensex rose 157 points to close at 14401.49, a gain of more than 1% over the previous close. The broader S&P CNX Nifty gained 44 points to close at 4327.

ET

9)Phonix Mills surged 9.97 per cent to Rs 184.80 after announcing that the German real estate fund MPC Synergy will invest 200 million Euros in a special purpose vehicle(SPV) floated by the company and its associate Entertainment World Developers.

BS

10)Sterlite Industries surged 4.34 per cent to Rs 626.75 as the metal prices rebounded after a global rally in commodities. The scrip opened at a price of Rs 600 and went on to achieve a high of Rs 631.75 and a low of Rs 600 during intra-day trading.

BS

11)The Securities and Exchange Board of India(Sebi) has asked all stock exchanges to direct their stock brokers to carry out complete internal audit on a half-yearly basis by independent qualified chartered accountants. The first such audit period will be from October 1, 2008 to March 31,2009. The audit shall cover the scope of the internal control system, compliance with the Sebi(SCRA), stock brokers and sub-brokers regulations, KYC requirements, bye- laws of the exchanges, data security and insurance in respect of the operation of stock brokers/ clearing members.

ET
 
BUYBACK

12)Telecom equipment manufacturer Valiant Communications said on Friday that its board will meet to consider a buy back proposal,following which shares of the firm surged as much as 20% to hit its upper circuit. The company, in a filing to BSE, said that a meeting of the board will be held on September 8 to consider the proposals of buyback of equity shares.

FE

BONUS ISSUE

13)MM Forgings said on Friday that it has received shareholders’ approval for issue of bonus share in the ratio of 1:1. Shareholders of the company at the annual general meeting held on August 18 approved the issue of bonus shares in 1:1 ratio, wherein one bonus share will be alloted for every share held, the company informed the BSE.

FE

MUTUAL FUNDS
 
14)UTI Mutual Fund on Friday launched UTI Short Term Fixed Maturity Plan Series-I-VI(90-day), an executive said. The new fund offer will close its subscription on Tuesday. The close-ended income schemes will invest its entire corpus in debt and money market instruments of a similar maturity profile.

BS

15)ABN Amro Mutual Fund has extended the subscription period of its 370-day debt plan to August 29, the fund house said in a notice on Friday. ABN Amro Fixed Term Plan – Series 12: Plan C, launched on August 8, was scheduled to close on Monday.

BS
 
COMMODITIES
 
16)Gold prices slipped on Friday as the dollar recovered some losses against the euro, but firm demand from investors in physical bullion supported the market. Gold edged down to $828/829 an ounce in Euro- pean trade by 1006 GMT from $832.40/833.40 an ounce late in New York.

BL

17)Turmeric futures prices may rule firm over the next three months on lower-than-the-expected crop for the new season as the sowing operation just completed last week, supported by rising domestic as well as export demand. Turmeric active October contracts were up Rs 150 to trade at Rs 3,817 per quintal on Friday(till 5.00 pm) over the past one week. However, futures prices fell by Rs 100 during the last two days on reports of higher stocks at Erode mandi.

FE

18)Tracking strong global trends, gold prices in the bullion market on Friday spurted by Rs 110 to breach the psychological Rs 12,000 mark on brisk buying by stockists and jewellers. While gold spurted by Rs 110 to close at Rs 12,020 per 10 gram, silver shot up by Rs 450 to settle the day at Rs 21,100 per kg.

DC
 
REAL ESTATE

19)SLOWDOWN in the realty sector has changed the way private equity (PE) players invest. Now, they are seeking higher and preferred re- turns besides securing their investment with colateral from developers. At the same time, deals are taking much more time to materialise due to the huge gap between the valuation presented by developers and what is acceptable to the PEs. Fund managers investing in realty say that there is a vaccum with regards to capital and liquidity for realtors and there is an opportunity for the PE firms with a long-term view.

ET

20)CITIGROUP-backed Golden Gate Properties plans to invest close to Rs 2,000 crore over two years in affordable housing projects, a senior official said. The projects will be funded primarily through customer sales, apart from banks loans to the tune of Rs 500 and equity, Golden Gate managing director K Pratap said. The Bangalore-based developer on Thursday announced plans to start construction on four township projects in Bangalore and Hyderabad, all grouped under the brandname Commune.

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21)HCC Real Estate Ltd(HCCREL), the real estate arm of construction major Hindustan Construction Company(HCC), is in the process of entering into large size land deals. The plots, aggregating 1,550 acres in various parts of India, will be used to develop townships.

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22)Ascendas, one of the biggest developers and manager of commercial properties in souteast Asia, is planning to increase the size of its India-focussed $355 million fund – Ascendas India Development Trust (AIDT) – which will invest in properties in Tier-II cities and expand presence in bigger cities. Though the amount of increase is not known, the fund has a target asset size of $710 million.

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INTERNATIONAL
 
23)US crude oil futures extended losses on Friday amid a strong dollar, a report of more OPEC output this month and as traders picketed profits after Thursday’s gain of more than $5. On the New York Mercantile Exchange at 11:45 a.m. EDT(1545 GMT), October crude was down $3.03, or 2.5 per cent at $118.15 a barrel, trading from $118.07 to $121.86.

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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