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.

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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.

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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.

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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.

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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.

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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.

ET

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.

BS
 
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