20 August 2008

GENERAL

1)With both India and Japan keen to build the strategic focus in their “global partnership”, the two nations are steadily stepping up their military ties, especially in the maritime domain. Even as Navy chief Admiral Sureesh Mehta left for Japan on Tuesday to discuss ways to bolster bilateral defence relationship, three Japanese warships are headed for India’s western coast for a visit to Mumbai port as well as “passex” exercise.

TOI

CORPORATE / INDUSTRY

2)Reliance Industries Limited (RIL) may soon be allowed to sell diesel to the state-owned oil marketing companies. Faced with unprecedented growth in demand for diesel, the government is mulling easing norms to allow RILs export oriented refineries to the feed domestic market.

FE

3)THE race to acquire mineral assets in foreign locations is still on. Naveen Jindal-led Jindal Steel and Power(JSPL), an OP Jindal Group company, is close to acquiring a state-owned coal mine in Mozambique (Africa) for Rs 200-250 crore. The coal mine is learnt to have re- serves of roughly 150-200 million tonnes per annum. If the deal goes through, the company may look at setting up a power plant at the same location. Mozambique is primarily a destination for thermal coal assets.

ET

4)VIJAY Kirloskar is set to unveil a German acquisition for his flagship Kirloskar Electric Co. Sources said KEC has clinched the bid for Lloyd Dynamowerke GmBH & Co(LDW) which manufacturers motors, machines and drive systems for Siemens, Alstom, ThyssenKrupp and  Gottwald in a deal estimated at around e50 million($70 million).

ET

5)Larsen & Toubro Ltd is close to buying equity stake in coal mines in Australia and Indonesia. “We are in the process of completing the due diligence,” says Mr K Venkataramanan, member of the Board and President – Engineering & Construction.

BL

6)The joint venture between the Star Group, the leader in the broadcast space in India and Balaji Telefilms, which is the custodian of some of longest running shows on Indian television, has finally come to an end. In an official communique on Tuesday, Balaji Telefilms informed the Bombay Stock Exchange, “The agreements entered into between Balaji and Star in April 2007 relating to the regional languages joint venture will also be termined.”

FE

MONEY & BANKING

7)The Reserve Bank of India would undertake a “wholesome review regarding the road map” to liberalise norms for foreign banks in the country, its Deputy Governor, Mr V Leeladhar, has said today. He said the first phase of the roadmap for entry of foreign banks was coming to an end in March next year.

BL

8)Bank of India has increased the interest rate on demestic rupee term deposits for various maturity buckets, between 15 and 50 basis points. The revised rates will be applicable only on fresh deposits and on renewal of maturing deposits with effect from August 20, the  bank said in a press release issued today.

BL
 
MARKETS
 
9)MARKET drifted lower on Tuesday due to lack of triggers, either locally or globally. Activity was subdued as investors remain wary of a turmoil in world markets, led by further losses arising out of US subprime loan segment. “We don’t see any major upside coming from  these levels though the index on Tuesday recovered almost 50% of its initial losses in the last one hour,” said Anagram Broking head of re- search VK Sharma. The 30-share BSE Sensex ended the day at  14,543, down 101 points over the previous close. The broader S&P CNX Nifty ended at 4368, a loss of 25 points over the previous  close.

ET

10)Berger Paints India, the second largest producer of paint in the country, rose 4.49 per cent to close at Rs 41.85 after it acquired Bolix from Advent International, a global private equity group. The company made the announcement after market hours on August 18 (Monday). Bolix is a leading provider of external insulation finishing systems(in the business-to-business segment) in Poland, with an annual turnover of $45.5 million in 2007.

BS

11)Telecom integration provider, Spanco Telesystems & Solutions gained 2.88 per cent to close at Rs 98.15, after the company announced on  Monday evening that it had bagged a contract worth Rs 70 crore from the government of Orissa for rolling out a statewide area network to connect over 300 districts/talukas.

BS

12)The BSE-listed Adhunik Metaliks Ltd has plans to raise Rs 250-300 crore by listing its subsidiary Orissa Manganese and Minerals Ltd (OMM) by end of the year. Mr Manoj Kr. Agarwal, Manging Director, Adhunik Metaliks Ltd, said, “We have finalised two merchant bankers and expect to complete the draft red herring prospectus in 60 days.”

BL
 
MUTUAL FUNDS

13)All equity and debt mutual funds posted positive returns in July except gilt funds amid a bounce-back in the market, credit rating agency Crisil says. There were six diversified equity-oriented schemes which gave over 10 per cent returns during the month ended July 31. Of these, the top four schemes belonged to LIC Mutual Fund.

BL

14)Mutual funds seem to be playing safe with their cash as they continue to sit on piles of it even as the equity markets exhibited a marked improvement in July on the back of softening crude prices. The bench- mark Sensex rose by more than six per cent in July. At the end of July, mutual funds were sitting on Rs 22,131 crore of cash that is  waiting to be deployed in the market.

BL

COMMODITIES

15)Guar seed futures prices on the National Commodity & Derivative Exchange Ltd(NCDEX) on Tuesday hit lower circuits on reports of good crop propects in Rajasthan and Haryana. Guar seed September 2008 contracts breached Rs 1,700-level mainly on short coverings amid some offerings. The September 2008 contracts declined by 3% settled at Rs 1,681 per quintal on reports of clear weather across Rajasthan and Haryana that will now benefit the standing crop. Initial estimates suggests that Guarseed output may exceed 100 crore bags in this year. “Guarseed prices are likely to trade sideways with positive bias on continued short covering, however, some fresh selling may emerge at higher levels due to higher crop estimates,” an analyst with Karvy Comtrade said. The September contract had fallen more than 19% after hitting a new high of Rs 2,172 per quintal on July 22.

FE

16)Pepper futures market dropped on Tuesday on bearish activities. August contract dropped by Rs 156 to Rs 14,010, below the spot prices for MG 1. The fall in other contracts was from Rs 123 to Rs 201 a quintal. Bulls were liquidating or switching over to next positions for a premium. There was selling pressure for August delivery. Those holding short positions were forcing delivery.

BL

17)Gold prices on Tuesday lost Rs 20 at Rs 11,560 per 10 gram in the bullion market in New Delhi on selling by stockists amidst weak global trends. Selling pressure picked up after the metal fell below $800 an ounce in Asia amid concerns that dollar may gain further eroding the appeal of gold.

DC

REAL ESTATE

18)The Mumbai-based Matheran Realty project could well be termed as a demand-supply match. The company has sold over 45,000 applications for booking of 3,000 units in a week and over 17,000 people have sought allotment of the flats. The units of 300-500 sq ft, at Rs 999 a sq ft in Karjat, are priced in the range of Rs 3-5 lakh each. Karjat is about 100 km away from Mumbai and over one hour and  forty-five minutes travel by train from the metropolis.

BL

COMMUNICATIONS

19)YOU’LL soon get to choose the cheapest STD and ISD tariffs, irrespective of your service provider. After recommending that internet telephony be opened up, telecom regulator Trai this week will mandate that telcos offer their subscribers the freedom to choose a carrier of their choice for making long distance calls, whether domestic(STD) or international (ISD). This will launch a new era of competition in long distance calls. Provided the government acts promptly to amend licence conditions to enable telcos to comply with the Trai directive.

ET

INFORMATION TECHNOLOGY

20)Software vendors in India are increasingly focusing on markets in EMEA(Europe, the middle-east and Asia) to counter impact of US slow- down on their revenues. US-based clients currently contribute around 60% of Indian IT majors’ revenue. Infosys recently said that it will cut dependency on the US market to 40% of its total revenue, while boosting revenues from Europe and other countries.

FE

21)ITC Infotech, the wholly-owned IT services subsidiary of FMCG giant ITC, has acquired US-based firm Pyxis Solutions for an enter- prise value of $25 million in an all-cash deal. This is the first acquisition by ITC Infotech and brings in around 100 people with  expertise in the area of quality assurance and testing services.

ET

22)Infotech Enterprises Ltd(IEL), a global technology solutions provider with US Geospatial Headquarters in Sterling VA, announced that it has signed a contract with IHS Inc. This contract marks Infotech’s first venture into the oil and gas industry. The contract is for an initial period of three years.

FE

INTERNATIONAL

23)OIL prices briefly dropped below $112 a barrel on Tuesday, extending the previous session’s decline as tropical storm Fay avoided oil-producing infrastructure in the Gulf of Mexico. By midday in Europe,light, sweet crude for September delivery was down 54 cents at $112.33 after falling as low as $111.78 barrel earlier in electronic trading on the New York Mercantile Exchange.

ET

24)LEHMAN Brothers Holdings may post a third-quarter loss and suffer about $4 billion in write downs, according to an analyst at JP Morgan Securities, who also said a sale of the company’s Neuberger Berman business was unlikely. It will be another difficult quarter for Lehman, analyst Kenneth Worthington said. Lehman continues to have significant exposure to mortgages and asset-backed securities, totaling $61 billion, he noted.

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