Headlines (30 September 2008)

GENERAL

1)A MUCH needed push was given by Defence Minister A K Antony and his Russian counterpart Anatoly Serdyukov to several military projects that had got stuck at various stages due to serious differences over how to carry them forward. Despite differences and irritants, New Delhi and Moscow have agreed to renew their defence partnership by another 10 years. The current inter-governmental arrangement of military and technical cooperation was due to expire in 2010.

Indian Express

ECONOMY & POLICY

2)India and the European Union(EU) today agreed to conclude a broad based Trade and Investment Agreement by 2009 and double their trade turnover to 100 billion Euros in the next five years, giving fresh impetus to their strategic partnership.

BS

CORPORATE / INDUSTRY

3)ORCHID Chemicals and Pharmaceuticals and US pharmaceutical major Merck have entered into a strategic research collaboration and licence agreement that would focus on discovery, development and commerciali sation of new agents for the treatment of bacterial and fungal infections.

ET

4)The multi-crore Sahara Group, with varied interests in real estate, media and investment(chit fund) business, is now entering the thermal power sector. Sahara has given a Rs 5000-crore proposal to the Orissa government for setting up a 1200 mega watt(MW) thermal power plant in Dhenkanal district.

BS

MONEY & BANKING

5)The rupee has hit a five-year low of 47.115 against the greenback in intra-day trade, before recovering to close at 46.97, the lowest since July 19,2006. Apart from weak sentiments in the global equity markets, local factors also played a part.

BS

6)INDIAN banks that have extended lines of credit(L/C) to subsidiaries of US financial majors such as Merrill Lynch and Lehman Brothers are no longer willing to risk such exposure. Coming in the aftermath of the financial crisis in the US, the move may result in the cancellation of deals worth about Rs 2,000 crore.

ET

7)ICICI Bank, the country’s second largest commercial bank whose stock has seen severe hammering in recent times on various speculations, clarified that 18% of its UK subsidiary’s non-India investment book has got an exposure to the United States currently.

FE

INSURANCE

8)The nationalisation of parts of banking and insurance group, Fortis, is not going to impact its Indian insurance joint venture, a top official said on Monday. “The new situation is not going to have any impact on the Indian JV,” said, G V Nageswara Rao, managing director and chief executive officer, IDBI Fortis. He explained that the bailout happened only in the banking as well as the asset management ventures of the company, leaving the insurance venture unaffected by it.

FE

MARKETS

9)Amid a sharp decline in Asian and European bourses, domestic exchanges fell like a pack of cards with the benchmark Sensex losing over 500 points to a two-month low level on selling by funds even as the much-awaited $700 billion rescue package of the US inched closer to final approval. The BSE barometer closed the day lower by 506.43 points at 12,595.75, a level last seen on July 16. During the day, the key index touched a low of 12,402.84 points. The 30- share Sensex had cracked the crucial 13,000-point level in early trade. The wide-based National Stock Exchange index Nifty also plunged by 135.20 points, or 3.39 per cent to 3850.05, after dipping to 3,777.30.

BS

IPO

10)Application Supported by Blocked Amount(Asba), the new mode of payment for retail investors, was first used in the public issue of 20 Microns. The issue opened on September 8 and closed on September 11. The issue size was Rs 23.93 crore and was oversubscribed four times, with the retail category getting 11.13-time oversubscription.

BS

11)Hyderabad-based Softline Software Services Private Limited is planning to raise about Rs 100 crore through an initial public offering (IPO) by June 2009 to part fund its expansion plan.

BS

MUTUAL FUNDS

12)HDFC Mutual Fund has extended the initial offer period of HDFC FMP 90D September 2008(4) plan until October 6, an official said today. Launched Friday, the 90-day income scheme under HDFC Fixed Maturity Plans – Series VIII, was to close Wednesday.

BS

13)Kotak Mahindra Mutual Fund today floated Kotak FMP 19M Series 2. Subscription to this 19-month debt plan will close on October 13, an official from the fund house said. The close-ended scheme will invest its assets in fixed income securities.

BS

CORPORATE SCORE

14)Tata Sons, the holding company for the Tata Group, has reported a 13 per cent increase in profit after tax(PAT) at Rs 3,780 crore during the financial year ended March 2008, as dividend income from group firms seem to have increased its profit. At this level of profit, the 91-year-old firm, whose two-third is owned by charitable trusts, would be one of the top profit earners among unlisted companies. The data was obtained from the Tata Motors’ letter of offer submitted to the market regulator, Sebi.

BS

COMMODITIES

15)Most agri-commodities traded either down or sideways in the futures market on Monday due to lack of buying interest in the physical market, owing to the last day of Pitrupaksha Shraadh. The two weeks of Pitrupaksha Shraadh, which is a time to honour departed ancestors, ended on Monday.

FE

16)Pepper futures market moved up marginally on Monday on bullish sentiments. October contract went up by Rs 51 a quintal to Rs 13,604, while November and December contracts were up by Rs 53 and Rs 47 a quintal respectively.

BL

17)Both the precious metals, gold and silver, fell on the bullion market in New Delhi by Rs 30 per 10 gram and Rs 50 per kg respectively on fresh selling by stockists influenced by weak global trend amid lower demand due to off season in the domestic market. Standard gold fell to Rs 13,100 per 10 gram while silver ready declined to Rs 20,790 per kg.

ET

INFORMATION TECHNOLOGY

18)As the global market situation continues to remain unstable, Nasscom could revise software exports growth forecast downwards by few percentage points for 2008-09 after review in December. “However, the industry would be able to meet the $60 billion target for 2010,” said Som Mittal, president, Nasscom.

FE

19)INFOSYS Technologies on Monday kept up the suspense over its response to a rival 650 pence-a-share offer by HCL Technologies for the Axon Group even as it faces the prospect of a bidding war to gain control of the UK-based SAP consultancy. There was no official word from Infosys, but sources at top levels said they were considering options. Axon has been totally silent. Sources said it is likely that Infosys will soon make a counter-offer which may not be substantially higher than the price offered by HCL.

ET

20)Aztecsoft said that the board has approved the share swap ratio for the merger of the company with MindTree. The board has approved the swap ratio under which Aztechsoft’s shareholders would be entitled to two equity shares in MindTree for every 11 shares held.

FE

21)Subex Ltd, a provider of Operations and Business Support Systems, said on Monday that it has signed with British Telecom a three-year framework contract of about $50 million, to provide products and services related to revenue assurance, fraud detection, interonnect billing and event integrity.

BL

INTERNATIONAL

22)IN the latest by-product of the widening global financial crisis, Citigroup will acquire the banking operations of Wachovia in a deal facilitated by the Federal Deposit Insurance Corp. Citigroup will absorb up to $42 billion of losses from Wachovia’s $312 billion loan portfolio, with the FDIC covering any remaining losses, the government agency said Monday. Citigroup also will issue $12 billion in preferred stock and warrants to the FDIC.

ET

23)European governments stepped into rescue Fortis, Bradford & Bingley Plc, and Hypo Real Estate Holding AG as tremors from the US credit crisis reverberated around the world. The UK treasury seized Brad- ford & Bingley, Britain’s biggest lender to landlords, while governments in Belgium, the Netherlands and Luxembourg threw an 11.2-billion euro($16.3 billion) lifeline to Fortis. Germany guaranteed a loan to Hypo.

FE

24)OIL prices dropped nearly 8% to below $99 a barrel on Monday on signs the financial crisis was spreading beyond the United States to Europe. US crude fell $8.40 to $98.49 a barrel by 12:28 p.m EDT, after touching a session low of $97.95, while London Brent crude traded down $7.63 to $95.91 a barrel.

ET

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The Hindu http://www.hindu.com
Deccan Chronicle http://www.deccan.com
The New Indian Express http://www.newindpress.com

Headlines (29 September 2008)

GENERAL

1)EVEN as the Indo-US nuclear deal is making its passage in the US  Congress, French President Nicolas Sarkozy on Sunday made clear  his country’s intention to forge ahead with the civil nuclear cooperation  with India which will be sealed in an agreement he is signing with  Prime Minister Manmohan Singh in Paris on Tuesday.

Indian Express

ECONOMY & POLICY
 
2)After much dilly-dallying, the finance ministry is likely to take a  call in the next few days on its proposal to make it mandatory for  listed companies to have public holding of at least 25% of their total paid-up capital for all times.  “In the next few days, we are  most likely to decide on the issue,” finance ministry sources said.

FE

CORPORATE / INDUSTRY

3)With terror threats looming large in every sphere, Government and  private agencies are tightening their grip on security measures.  The security solutions’ industry is seeing a four-fold growth backed  by awareness and demand from various quarters.  The market is  seen at Rs 1,800 crore.

BL

4)Transport Corporation of India aims to be a Rs 2,000 crore organisation by 2010; it plans to invest Rs 125 crore for ship acquisitions and Rs 50-60 crore for purchase of trucks and construcing several warehouses across the country.  The focus will be on value-  added products.

BL

MONEY & BANKING

5)The Indian banking sector saw mark-to-market (MTM) losses of around  Rs 400 crore due to their investments in instruments of troubled US financial giants Lehman Brothers and AIG.  About 75 per cent of these  losses is accounted for by the ICICI Bank alone.

BS

6)The tight liquidity conditions have kept some banks from rolling  over existing short-term loans to companies, especially public sector undertakings, once these loans mature.  Such banks, including  the country’s largest bank, State Bank of India, have decided to reduce the flow of loans with tenure of up to 12 months and instead  focus on sanctioned credit limits.

BS

MARKETS

7)Indian equity markets, which witnessed extensive volatility in the  last week’s trades, are likely to start on a positive note this week.  The US house of representatives has approved India to resume the trade  in nuclear fuel and technology.  This dealers say that, will be viewed  as a positive development and bring in some cheer.  And at the same time, traders would be watching out for key developments, both domestic and global, in the week ahead.  Anita Gandhi, head institutional  business at Arihant Capital Market said, “This news can bring much  awaited relief in the domestic markets.  In the past weeks we saw huge volatility in the market, but in the days to come we assume that global markets will continue to determine the market direction  for some more time now.”

FE

8)COMPANIES that have issued foreign currency convertible bonds  (FCCBs) could be a jittery lot as the market continues to buckle under mounting pressure of global financial turmoil. With no strong recovery in sight in the near term, investment bankers fear some of  the companies, particularly the cash-starved ones where FCCBs are  due for maturity in the next few months, may run the risk of diluting  promoters’ stakes substantially if they are not able to repay the debt  to investors.

ET

MUTUAL FUNDS

9)UTI Mutual Fund is likely to launch its Wealth Builder Fund-Series  II on October 21.  This is billed as the first ever scheme in the mutual funds industry that would allow investors to get exposure in equities as well as gold under the banner of the same fund.  Wealth  Builder Fund Series -II is an open ended equity oriented scheme  that would look to achieve long term capital appreciation by investing predominantely in diversified portfolio of equity instruments  along with gold and gold related instruments.

BL

COMMODITIES

10)The financial meltdown in the US economy is unlikely to affect the  Indian commodity sector but there is a need to strengthen the regulatory mechanism in the country, a top government official said. “The financial meltdown in the US is a great lesson for us.  It may  not affect the commodity sector in India but we need to strengthen  our regulatory mechanism,” Forward Markets Commission(FMC)  Chairman B C Khatua said, while addressing the Globoil India conference in Mumbai.

BS

11)India may be eyeing to become the largest producer and exporter  of cotton in the world but it fails to attract higher prices of its cotton in the international market because it lacks a quality benchmark  or certification.  As part of its efforts to brand Indian cotton by creating a quality benchmark, The National Commodity and Derivatives Exchange(NCDEX), a leading comex in the country, has come out with  a novel concept called Gold Circle.  Gold Circle will be a elite group  of Indian ginners, who will undertake stringent checks and balances in ginning and sorting of cotton.  The parameters will be set by  NCDEX and the exchange will also certify the cotton.

BS

12)The international pepper market appears to be facing a tight supply  position when there is every possibility of potential demand emerging  in the coming weeks from the US and European markets to cover for their uncovered portion of the winter/New Year requirements.  However,  it might depend on how far the crisis in the US economy is going to impact the pepper market there.  Anyway, the pepper prices have moved  up during the week and an upward swing is seen in the international  market also.  All the contracts went up during the week and the increase was from Rs 736 to Rs 786 a quintal on NCDEX and on NMCE, it was from Rs 686 to Rs 829 a quintal.

BL

COMMUNICATIONS

13)Reliance Communications Ltd(Rcomm) has commenced the soft launch of its GSM network across major cities including Mumbai,Delhi,  Gujarat, Punjab and Southern states.  The company has invested Rs  800 crore each in Mumbai and Delhi to set up 2,500 towers respectively in the two largest circles in the country.

ET

BUSINESS PROCESS OUTSOURCING

14)Hinduja group company and outsourcing major HTMT Global Solutions  has allocated $100-million for BPO company acquisitions in the domestic and international markets, a top company official said.  “We are looking at acquisition of BPO companies and have earmarked a $100  million for the purpose.  But we are not in a rush,” HTMT’s Chairman,  Ramkrishan P Hinduja, said at the company’s annual general meeting held in Mumbai.

BS

KNOWLEDGE PROCESS OUTSOURCING
 
15)The Wall Street collapse will take the most toll on the knowledge  process outsourcing (KPO) business in India, according to industry  experts, but firms are optimistic that the meltdown will still create  opportunities for outsourcing.  The filing of bankruptcy by investment  bank Lehman Brothers has hit its KPO services provider eClerx Services, hard. The KPO firm earned around 13% of its business from Lehman Brothers.  “Lehman Brothers was one of our top five clients, and  their collapse will definitely affect the business in a negative way.  But it will be a short-term affect,” commented PD Mundhra, executive director, eClerx Services.

FE

LEGAL PROCESS OUTSOURING

16)At a time when the off-shoring industry is plagued with instances  of employee layoffs, companies providing legal process outsourcing  (LPO) services are on a hiring spree as demand for litigation services from the US rises.  In the next six months to a year, several  LPOs have plans to at least double headcount in order to cater to the increased work flow resulting from the recent turmoil in the US that has seen several financial institutions collapse.

BL

INFORMATION TECHNOLOGY
 
17)INFOSYS is likely to make a one-time move to match or surpass HCL’s offer to acquire London-headquartered SAP consulting firm  Axon, but would guard itself from embroiling in an expensive bidding war, sources said.  Axon board, which received HCL’s 650 pence counter offer amounting to $811 million on Friday, is expected to formally discuss the development after providing Infosys the  mandatory 60-hour window to react.

ET

INTERNATIONAL

18)The Indo-US civil nuclear deal moved into the final lap, clearing  a major hurdle, when the House of Representatives approved a legislation that will now go to the Senate, which is likely to vote on it on Monday.

BS

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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

Headlines (26 September 2005)

GENERAL

1)The US Congress is poised to approve Washington’s landmark nuclear deal with New Delhi just ahead of Prime Minister Manmohan Singh’s visit to the White House on Thursday, paving way for India’s complete re-engagement with the world’s nuclear community and furthering its strategic re-alignment with the United States.

TOI

ECONOMY

2)Inflation for the week ended September 13 remained unchanged at 12.14%. The wholesale price index(WPI)-based inflation has stabi- lised on a year-on-year basis though it remains well above the 3.5% for the corresponding week last year. Importantly, unlike the last week, there was no spike on a week-on-week basis. This stability in prices, according to economists, suggests that there isn’t much upside to the inflation numbers from here.

ET

CORPORATE / INDUSTRY

3)Vedanta Resources, the Indian mining company controlled by billionaire Anil Agarwal, plans to invest $9.8 billion to become the world’s fifth-largest aluminum producer. The company said today that it will raise annual smelting capacity to almost 2.6 million metric tonnes by 2012.

BS

4)Steel pipemaker Man Industries said on Thursday that it has received orders worth Rs 1,100 crore in the current quarter for spirally welded pipes. The order, to be completed in 9-12 months, including supplying around 225,000 tonnes of pipes to domestic and overseas clients.

BS

5)HYDERABAD-based Maytas Infra is betting on the energy sector. The company is looking at projects in the oil and gas segment to increase its revenues. Currently, the Rs 1,881-crore company gets about 20% of its revenues from the power sector. “In future, we expect the revenue share from this sector to reach about 30%,” said Maytas Infra director and CEO PK Madhav. The company is engaged in other verti- cals such as water, buildings & structures and transportation.

ET

MONEY & BANKING

6)THE rupee has fallen past the 46-mark against the dollar for the second day in a row on Thursday under pressure from heavy monthend dollar demand from importers and oil refiners. In spite of some central bank intervention at lower levels, the rupee ended the day at 46.20/22 against the dollar, weakening from its previous close of 45.95/96.

ET

7)UCO Bank chairman and managing director Subodhkumar Goel has said that his bank will raise Rs 500-600 crore through follow on public issue(FPO) in the third quarter of this fiscal.

FE

8)Deutsche Bank has emerged as the leading investment bank in India leaving behind conventional players such as Merrill Lynch, Lehman Brothers and Goldman Sachs. With a market share of 16.6 per cent in mergers and acquisitions and 14.2 per cent in fund raising through the equity route, the investment banking arm of the German financial behemoth has become the numero uno investment bank in the country.

BS

MARKETS

9)Taking a cue from global markets, the country’s bourses ended in the red. The 30 share BSE Sensex shed 145.34 points, or 1.1%, to 13,547.18. The S&P CNX Nifty Index on the National Stock Exchange fell by 1.2% shedding 50.7 points to close at 4,110.55. Rising uncertainty on the outcome of the US government’s plan to bail out the market and assuage the impact of the credit crisis caused the tremors. Added to this was the statement by Federal Reserve chairman Ben Bernanke who warned of ‘grave threats’ for the US economy.

FE

RIGHTS ISSUE

10)The Securities and Exchange Board of India(Sebi) has expanded the horizon of reforms in the primary capital market by launching a pilot project to apply the Application Supported against Blocked Amount (Asba) system in case of rights issues also. So far, Asba was appli- cable to initial public offerings(IPOs), and that too only for retail in- vestors. In the pilot project, Asba will be applied to rights issues of Tata Motors and Sadhana Nitro Chem, which are opening on September 29.

BS

11)Suzlon Energy Ltd, India’s largest wind energy company, plans to raise up to Rs 1,800 crore through a rights issue of shares. Suzlon’s board will meet on Saturday to consider the proposal, the company informed the BSE.

FE

MUTUAL FUNDS

12)DSP Merrill Lynch Investment Managers(DSPMLIM) has got approval from the Securities and Exchange Board of India(Sebi) to change its name to DSP BlackRock Investment Managers to reflect the change in ownership of the asset management company. The mutual fund will be called DSP BlackRock Mutual Fund.

BS

13)Religare AEGON Asset Management Company on Thursday announced that it has received the final regulatory approval from the Securities and Exchange Board of India(Sebi) to launch mutual fund business in the country. The AMC is looking at launching its first product for the Indian retail investor by November-December this year.

BL

COMMODITIES

14)Lead metal prices on the Multi-Commodity Exchange of India(MCX) are expected to remain at the stable-to-high level in the short term, chiefly due to declining stockpiles and potential cuts in production by larger smelters. On the London Metal Exchange(LME), the cash price of lead was up nearly 7.4% to trade at $1,921 per tonne on Wednesday, from $1,788 a tonnes quoted on September 11, while the MCX lead November futures were up by 12% to trade at Rs 93.80 per kg on Wednesday, from Rs 83.65 per kg recorded on September 5.

FE

15)Gold prices advanced on the bullion market on Thursday on fresh stockists buying on hopes of good festival demand. Silver continued to rule firm on sustained industrial demand. Standard gold (99.5 purity) rose by Rs 95 for 10 grams to Rs 13,110. Pure gold (99.9 purity) hardened to Rs 13,170 from Rs 13,075.

BL

COMMUNICATIONS

16)WITH its big-bang listing being put on the backburner, state-owned BSNL is now exploring opportunities in the global markets to expand its operations. This is the first time that BSNL, which so far concen- trated only on the Indian market, has decided to expand overseas.

ET

INFORMATION TECHNOLOGY

17)DELL, the world’s second biggest computer maker, expects to grow faster than other companies in the business, Chief Executive Michael Dell told on Thursday. “You will see Dell grow faster than the rest of the industry in Europe and in the world,” Dell said.

ET

18)ORACLE is selling computer hardware for the first time in its 31 year history, signalling an ambition to become more than a one-stop shop for business software. The expansion announced on Wednesday by Chief Executive Larry Ellison calls for Oracle’s sales team to peddle a “database machine” and a smaller storage product, both made by Hewlett-Packard.

ET

INTERNATIONAL

19)Oil fell on Thursday, but moved up from session lows in response to hopes of agreement on a proposed $700 billion financial sector bailout plan plus weakness in the dollar. Prices had fallen more than $2 initially, pressured by further evidence of US economic weakness than has begun to impact demand for oil. US crude traded down 30 cents to $105.43 a barrel by 1409 GMT, after a session low of $103.22. London Brent crude fell 26 cents to $102.19.

BL

20)Presidential George W Bush is bringing presidential candidates Barack Obama and John McCain into negotiations on a $700 billion rescue of Wall Street as Democrats and Republicans near agreement on a bailout plan with more protections for U.S. taxpayers.

Hindu

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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

Headlines (25 September 2008)

GENERAL

1)Prime Minister Manmohan Singh and his Chinese counterpart, Wen Jiaobao expressed “satisfaction” at the progress made recently by  their respective designated special representatives on the boundary  question.  Acknowledging that the boundary dispute was a “complicated” issue, the two prime ministers reportedly encouraged the special  representatives to continue their labours.

Hindu

ECONOMY

2)India has retained its position as the second most-preferred global  location for foreign investment in 2008 and will continue to do so  till 2010, lagging only behind China, the United Nations Conference  on Trade and Development(Unctad) has said in World Investment  Report 2008.

BS

3)A leading economic think tank has said that industrial activity in  the country would not slow down despite the monthly Index of In-  dustrial Production(IIP) for manufacturing slipping to 5.6 per cent.  “We believe that industrial growth is not appropriately captured by  the IIP numbers and there is no real slowdown in industrial activity,”  the Centre for Monitoring Indian Economy(CMIE) said in its latest  report.

BS
 
CORPORATE / INDUSTRY

4)Tata Sons Ltd, the Indian holding company with investments ranging  from automakers to hotels, said the credit crisis presents it with op-  portunities to make acquisitions in the US and Europe.  As access  to capital tightens, competition for assets from competitors will dissipate and prices may fall, Alan Rosling, executive director of Mumbai-based Tata Sons, said on Tuesday in New York.

FE

5)Bajaj Electricals Ltd’s engineering and projects business, special  projects receives an order from NESCL under Rajiv Gandhi Grameen  Viyutikaran Yojana.  It has been awarded two prestigious rural electrification orders by National Electric Supply Company Ltd(NESCL).  The first order is the single largest order by NESCL under the Rajiv  Gandhi Grameen Viyutikaran Yojana.  The second order is worth  Rs 72 crore.

FE

MONEY & BANKING
 
6)The rupee on Wednesday was volatile in a market that saw thin volumes  on account of the strike by nationalised banks.  The demand for dollars  in the spot market, by participants who took advantage of the arbitrage  in the overseas non-deliverable forwards(NDF) market, pulled the rupee down to the day’s low of 46.10, said dealers.  The rupee opened at  45.75/77 and closed at 45.95/96, down 50 paise from the previous  close of 45.44/45.

BL

7)Toeing the line of peers like ICICI Bank, HDFC Bank, Kotak Mahindra  Bank, State Bank of India and Indian Overseas Bank, Andhra Bank is  also planning to make a foray into gold retailing business.  It has approached the Reserve Bank of India(RBI) to obtain necessary clearances.

FE

8)The board of directors of South Indian Bank(SIB) has fixed October  17 as the record date for the purpose of issue of bonus shares.  The  80th AGM held on August 18,2008 had already approved the Board’s  recommendation to pay a dividend of 30% for the previous fiscal and effect issue of bonus shares for every 4 equity share held on the record date.

ET

INSURANCE

9)The credit ratings of Indian insurance companies – both life and  non-life – are unlikely to be affected in the near future despite the global financial crisis affecting the foreign stakeholders of these companies.  But if the foreign partners are unable to bring  in additional capital in the long term due to the global slowdown,  it could mean a change of ownership for Indian insurance companies, said analysts.

BL

MARKETS

10)Benchmark indices snapped a two-day losing streak to close the day with respectable gains, but off their intra-day highs.  Brokers attribute the volatility to squaring of positions in the derivatives segment ahead of the current contracts expiry on Thursday.  News flow  from the global front was mixed.  While the Damocles sword continued  to hang over the proposed $700-billion federal bailout for financial firms  in the US, the Indo-US nuclear deal was ratified by a key Senate Committee with an over-whelming majority.  The Senate Foreign Relations  Committee voted to approve the bill by 19-2.  Led by metal stocks, the  30-share Sensex closed at 13,692.52, up 122.21 points.  The broader  50-share Nifty touched the intra-day high of 4207.95 to end at 4161.25,  a gain of 34.35 points over its previous close.

ET

11)STERLITE Industries India jumped 8.36 per cent to Rs 487.5 on Wednesday after the Vedanta board dropped the proposed restructuring  scheme, announced earlier this month, due to opposition from some  shareholders.

BS

12)Sun Pharmaceuticals rose by around 2 per cent to touch Rs 1,500  on Wednesday after the firm received nod from the US Food and Drug Administration for is abbreviated new drug application to market  the generic version of the carboplatin injection.

BS

RIGHTS ISSUE

13)Tata Motors’ Rs 4,150-crore rights issue will open Monday and close  on October 30, according to the company’s draft document posted on  Sebi website on Wednesday.  Record date for the rights issue is September 16.  The passenger car and commercial vehicle major will use  the rights issue proceeds to prepay a part of the short-term loan availed for financing acquisition of Jaguar and Land Rover brands that  it bought for $3 billion(Rs 13,300 crore).

BS

MUTUAL FUNDS

14)With the equity markets on a downslide, mutual funds have been aggressively launching fixed maturity plans(FMPs) to attract customers.  The lure: good returns and tax benefits.  Returns have been increasing steadily because of tighter liquidity conditions.  Just a year  ago, in September 2007, three-month FMPs’ indicative rates(mutual  funds can only indicate and not guarantee returns) were around 8-8.3  per cent, and for over 12 months, they were hovering around 9-9.50  per cent. The FMPs launched this month are offering 11 per cent for  both the short and long term.

BS

15)DSP Merrill Lynch Mutual Fund launched DSP Merrill Lynch FMP-3M-Series-15.  The new fund offer of the three-month plan will close on  Thursday, a fund house notice said.  The close-ended income scheme  will deploy its entire assets in fixed income securities having a maturity profile similar to its own.

BS

16)HDFC Mutual Fund will launch HDFC FMP 90D September 2008 (4) plan under HDFC Fixed Maturity Plans – Series VIII Friday, a fund house  official said today.  The close-ended 90-day income scheme will remain  open for subscription until Oct 1.  The plan will deploy at least 60 per  cent of its corpus in debt and money market instruments, and up to  40 per cent will be invested in government securities that mature  in 3 months.

BS

COMMODITIES

17)Gold futures are back on the upswing on Wednesday amid the ongoing  uncertainty facing the US financial system along with concerns about  potential inflation, especially if a proposed rescue package passes,  analysts said.  Around 9:41 a.m. EDT (1341 GMT), December gold was  up $8 to $899.20 an ounce and had been as muscular as $907.80 on  the Comex division of the New York Mercantile Exchange.

BL

18)Lack of substantial export enquiries pulled down chilli futures in  NCDEX by 2.36 per cent to Rs 5,248 a quintal.  Jeera fell nearly  2 per cent to Rs 10,557 a quintal on low demand coupled with stockists unwinding their inventory in anticipation of a good crop  in the coming season.

BL

REAL ESTATE

19)EXPECTING a huge value erosion in the Indian real estate space, corporate and real estate funds have started to float new funds to  acquire assets in the domestic property market.  Corporates such as  the Aditya Birla group, GMR Infrastructure, Akruti City, Bangalore-  based Nitest group and saffron Advisors have either floated or are  in the process of floating funds with corpus ranging between Rs 500  crore and Rs 1,000 crore.

ET

20)With falling real estate values in the US and the downturn in Indian property market making local valuations more attractive, real  estate fund Millennium Spire – part of the UK-based Millennium Group – is looking to invest $300 million into realty projects in  India in the next 12-18 months.

BL

21)REAL estate developer QVC Realty plans to raise up to Rs 600 crore  in 2009 through a mix of equity and debt primarily to buy large tracts  of land in the South, especially closer to the new airports in Bangalore and Hyderabad. 

COMMUNICATIONS

22)AFTER offloading a 45% stake to UAE’s Etisalat for $900 million,  Swan Telecom is set to acquire the mobile licences held by Allianz  Infratech.  The deal, which may run into a couple of hundred crores,  is likely to be announced within a fortnight, according to sources  close to the development.

ET

INFORMATION TECHNOLOGY
 
23)Cognizant Technology Solutions, which provides IT, consulting and  BPO services, on Wednesday said it plans expansion into new markets  such as Japan, Australia and Singapore against the backdrop of the financial turmoil in the US market.  “There is uncertainty about the  US market and this contagion seems to be spreading to other parts of  the world. So even as we put in more trust on the US market, we will  continue to explore newer markets,” Vice-Chairman of the Nasdaq-  listed firm, Lakshmi Narayanan, said.

BS

INTERNATIONAL

24)American International Group Inc said late on Tuesday it signed a “definitive” agreement for up to $85 billion in borrowings from the  US Federal Reserve, the main part of a rescue by the central bank that will see it take a 79.9% stake in the giant insurer.

FE

25)Billionaire investor Warren Buffett, who tells investors to be “greedy  when others are fearful”, put up $5 billion for Goldman Sachs Group  Inc after the firm lost 40 per cent of its market value in the past year.  Buffett’s Berkshire Hathaway Inc is buying a stake in Goldman after  three of the investment bank’s biggest competitors went bankruptcy or  were forced into emergency sales.

BS

26)Crude oil futures surrendered some gains on Wednesday after traders  looked past weekly US oil data showing sizable drawdowns in petroleum  inventories.  Light, sweet crude for November delivery was recently up  $1.08 at $107.69 a barrel on the New York Mercantile Exchange, down  more than $1 from its level before the data release.

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

Sun Outage

Please note, during the Sun outage from 
September 24, 2008 to October 08, 2008 (11.25hrs to 12.05 hrs) 
Vsats services may be disrupted and the users may face loss 
of connectivity. Revised Market timing as under for the 
period: 24/09/2008 to 08/10/2008
NSE Cash Market Segment Market Time
Market Open 09:55hrs
Market will remain close 11:25 hours to 12:05 hours
Pre-open period (only for Normal Market) 12:05 hours to 12:10 hours
Market re-open 12:10 hours
Market close 16:15hours
Closing Session start 16:35 hours
Closing Session end 16:45 hours
Auction Market Open 13:00hours
FAO Segment Market Time
Normal Market / Exercise Market Open time 09:55hrs
Normal Market close time due to sun outage 11:25 hours to 12:05hours
Pre Open time after sun outage 12:05 hours to 12:10 hours
Normal Market re-open time after sun outage 12:10 hours
Normal Market close time 16:15 hours
Position Limit/Collateral value Set up cut off time 16:15 hours
Trade modification end time 17:00 hours
Exercise Market Close time 17:00 hours
BSE Session Start Time End Time
Log -in 9 : 00 a.m. 9 : 55 a.m.
Continuous 9 : 55 a.m. 11 : 25 a.m.
No trading due to Sun Outage (only Log-in session) 11 : 25 a.m. 12 : 10 p.m.
Resumption of Continuous Session 12 : 10 p.m. 4 : 15 p.m.
Closing 4 : 15 p.m. 4 : 25 p.m.
Post Closing 4 : 25 p.m. 4 : 45 p.m.
Members Query & 6A/ 7 A reports 4 : 45 p.m. 6 : 00 p.m
Currency Derivatives (CDS) Market Time
Normal Market / Exercise Market Open time 09:00hrs
Normal Market close time due to sun outage 11:25 hours to 12:05hours
Pre Open time after sun outage 12:05 hours to 12:10 hours
Normal Market re-open time after sun outage 12:10 hours
Normal Market close time 17:00 hours
Position Limit/Collateral value Set up cut off time TILL: 17:30 hours
Trade modification end time TILL: 17:30 hours

Headlines (24 September 2008)

GENERAL

1)The entire brains trust of Indian aviation  scientists, developers  and operators  met in New Delhi on Tuesday to initiate an ambitious  project to manufacture civil regional aircraft.  The mission would be  to make a cheap, rugged and easy to maintain 70 to 110-seater  civilian aircraft that should start rolling out within a decade.

Hindu

CORPORATE / INDUSTRY

2)Anil Ambani, chairman, Reliance Natural Resources(RNRL), charted  the future plans of the company and announced the company’s foray  into the shipping business.  Speaking at the 8th annual general meeting of RNRL, he also told shareholders that the company will set up  cement plants at various sites, totalling 20 million tones  of capacity.

FE

3)Nagarjuna Construction Company Ltd has secured four new orders aggregating Rs 413 crore. The first order, valued at Rs 229 crore,  is from Maharashtra State Electricity for supply and commissioning  of sub-transmission lines, new substations and other lied works in  Osmanabad and Latur divisions.  The second order is for design and  execution of Eluru Water Supply Scheme(AP) valued at Rs 73 crore. The third(Rs 61 crore) is from the Info Park, Thapasya, Kusummagiri,  Kochi for construction of 5.5 lakh sq ft. software development buildings.  The fourth order is from the Andhra Pradesh Government for  commissioning gravity main under Somasila Drinking Water Supply Scheme at Kadapa-Rajampet Highway, according to a release.

BL

4)Punj Llyod has bagged a contract for engineering, procurement, installation, and commissioning of a 211-km pipeline project from Qatar Petroleum worth $800 million.  A release said the company would undertake  construction works for the gas stations and necessary infrastructure.  According to company Chairman Mr Atul Punj, “This is the fourth EPC contract that we have bagged in Qatar and this demostrates the confi-  dence of the clients in the group’s capability in executing large and  challenging projects.

BL

MONEY & BANKING

5)The rupee closed about 20 paise lower on strong dollar demand and  a weak domestic equity market.  The rupee opened at 45.50 and  touched a low of 45.94 during day trade.  It closed at 45.73, against  the previous close of 45.44/45.

BL

6)Newly-appointed Reserve Bank of India(RBI) governor D Subbarao will present his maiden mid-term credit policy review for 2008-09  on October 24.  He will meet chief executives of major scheduled  commercial banks at 11 am on that day at the RBI headquarters.  Analysts are now keeping their fingers crossed on whether Subbarao  would go for another rate hike in the forthcoming policy to tame  the down double digit inflation.

FE

MARKETS

7)IN TANDEM with global markets, the benchmark Sensex nosedived, over 424 points as investors globally awaited the US government’s proposed $700 billion rescue plan.  The Bombay Stock Exchange barometer closed the day at 13,570.31 points, a steep fall of 3.03  per cent over the last close with the IT stocks index, widely anticipated to be one of biggest Indian casualties of the US credit crisis,  taking the biggest hit of 5.07 per cent among sectoral indices. The  50-issue Nifty of the National Stock Exchange also dipped 96.15  points, or 2.28 per cent, to 4,126.90 points.

BS

8)The markets timing from September would be modified on both the stock  exchanges(SEs) due to sun outage.  Due to heavy solar activity, the VSAT services are likely to be disrupted from September 24,2008 to  October 08,2008(both days inclusive), according to both the SEs. The  trades will start as usual at 9.55 am and halt between 11.25 am to  12.10 pm to resume trades from 12.25 pm till 4.15 pm, when the markets would close for the day.

FE

9)The Securities and Exchange Board of India(Sebi) chairman, C B Bhave, today said that the regulator had no intention of imposing a  ban on short selling.  Bhave was speaking to a news channel from New York, where he is attending the India Investment Forum.  Bhave  said regulations on short selling in India were adequate and foreign  institutional investors'(FIIs’) withdrawal from the country was mainly due to global conditions.

BS

RIGHTS ISSUE

10)Real estate company Sobha Developers on Tuesday said it will raise  up to Rs 350 crore funds through rights issues.  The company took a  decision in this regard during its meeting held on Monday, a company  filing to the BSE said.

ET

COMMODITIES

11)The National Commodity & Derivatives Exchange(NCDEX) will extend  evening trading hours by 25 minutes from November 2008 due to international daylight saving timings, it said in a circular.  Trading in bullion, metals, crude, polymers, coffee, carbon credits and furnance oil  will continue till 11:55 pm, compared with 11:30 pm earlier, it  said on Monday.

BS

12)The prices of jeera (cummin seed) after rising steadily for last  four months have declined marginally at the country’s trade centre  located at Unjha, Gujarat.  This has been attributed to prospects of  a good production following the recent rains in parts of Gujarat. According to traders, the price of a 20-kg bag of jeera, which rose from Rs 1,500 in April to Rs 2,450 in July, has marginally declined  to around Rs 2,300.

FE

13)Mustard seed futures rose slightly on the NCDEX counter today on  expectations that the demand for mustard oil would rise during the  festive season amid short supply of the commodity.  At 1 pm, the most-active November contract jumped by 0.71 per cent at Rs 588 per 20 kg and January 2009 contract by 0.48 per cent at Rs 568 per  20 kg.

BS

14)Gold and silver prices rallied for the third straight session on the bullion market despite a weak trend overseas.  Standard gold(99.5  purity) improved by Rs 240 for 10 gram to Rs 13,035 and pure gold  (99.9 purity) shot up to Rs 13,085 for 10 grams from Rs 12,855. Silver ready (.999 fineness) flared up by Rs 550 a kg to Rs 20,840.

BL

REAL ESTATE

15)Real estate companies appear to be eyeing the commercial development on 45,371 sq metres of railway land in Mumbai’s Western Express highway at Bandra-east.  The Rail Land Development Authority  (RLDA) is executing the project and had recently held the pre-bid  meeting.

BL

16)VGN Group, one of Chennai’s leading real estate developers, will  be developing mega township and residential projects,comprising 30  million sq ft built up area in and around Chennai with an estimated  investment of Rs 11,400 crore over a period of five years.  The company has acquired necessary land for these projects, said Pratish  Devadoss, managing director, VGN.

FE

COMMUNICATIONS

17)UAE-based Emirates Telecommunications Corporation(Etisalat) has  signed an agreement to acquire 45 per cent stake in India’s Swan  Telecom for around $900 million(around Rs 4,410 crore).  The deal  puts the value of the Indian GSM service provider, which holds telecom licences in 13 circles, at around $2 billion.

BS

INFORMATION TECHNOLOGY

18)THE appetite for acquisitions by Indian IT companies remains undiminished with software services majors Tata Consultancy Services(TCS)  and Tech Mahindra eyeing the India design services unit of the $31-  billion Flextronics, multiple sources said.

ET

19)HCL Technologies a leading IT services provider, has identified 38  companies globally as possible acquisition targets.  “We expect to  lap up a few companies by 2012 and we are also willing to spend over  a billion for a right fit company,” said HCL Technologies CEO Vineet  Nayar.  The company reckons the move will help it cash in on the  new opportunities arising from the global financial meltdown.

ET

INTERNATIONAL

20)THE architects of a $700 billion bailout for the US financial system urged lawmakers on Tuesday to move quickly, and the sale of Lehman Brothers’.  European arm loomed as the next step in the industry’s dramatic transformation.  Federal Reserve chairman Ben Bernanke  and Treasury secretary Henry Paulson called for immediate action on a  plan for the government to buy up hundreds of billions of dollars of tainted mortgage-related securities, but world markets remained on tenterhooks.

ET

21)Crude oil futures traded lower on Tuesday, as the market cooled down following Monday’s record rally.  Light, sweet crude for November delivery traded 78 cents, or 0.7%,lower at $108.59 a barrel on  the New York Mercantile Exchange.

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

Headlines (23 September 2008)

GENERAL

1)After three years of intermittent discussions, India and Pakistan on Monday decided on the modalities of trade across the Line of Control through Jammu and Kashmir. The two sides are now understood to have agreed on opening the Srinagar-Muzaffarabad and Poonch-Rawalkot road routes to trade. Like the bus services that connect the two parts of the state divided by the LoC, the decision on trade is another initiative in a series of confidence building measures(CBMs) that should help increase people-to-people contact, particularly within divided Kashmir.

Indian Express

ECONOMY

2)COMPANIES developing infrastructure projects can now borrow more abroad. The government on Monday relaxed external commercial borrowings(ECBs) norms and allowed infrastructure companies to borrow up to $500 million a year for rupee spending in India, a five-fold hike over the current limit of $100 million.

ET

CORPORATE / INDUSTRY

3)Tata Steel has picked up a 7.29 per cent stake in Australia-based Riversdale Mining through Tata Steel Global Minerals Holdings, an indirect subsidiary of the steel major. Tata Steel already has a relationship with Riversdale Mining. Sources close to the development said, Riversdale was a growing company and the investment made sense for Tata Steel.

BS

4)Hyderabad-based Gati has embarked upon a $100 million(Rs 450 crore) revamp exercise to transform itself from a cargo company into a supply chain and logistics major. The company is also focusing on expanding its international business.

BS

MONEY & BANKING

5)The rupee failed to hold on to intra-day gains against the dollar on Monday but closed tad firmer tracking the stock market movement. Volumes in the foreign currency market were also thin, said dealers. But the injection of liquidity by central banks globally helped the market sentiment, said forex dealers. The rupee opened at 45.55 and touched a high of 45.22/23. It, however, closed lower at 45.44/45, against Friday’s close of 45.83.

BL

6)NINE of the country’s largest commercial banks including State Bank of India, ICICI Bank and HDFC Bank have exposure to the tune of $420 million(Rs 2,000 crore) in the US financial giants which collapsed recently. The government feels banks other than SBI would suffer a loss of around Rs 600 crore due to the ongoing crisis.

ET

7)BANKRUPT foreign investment banks like Lehman Brothers and others, who have exposures in India’s realty sector, may get some reprieve from the government. Mandatory three-year lock in norms for all foreign direct investment may be relaxed on a case-to-case basis for these I-banks if they apply to FIPB.

ET

8)The country’s largest lender, State Bank of India(SBI), has drawn up an aggressive blueprint, which marks possible acquisitions, to expand its operations overseas. A senior executive of the bank’s international banking division told FE that SBI is vetting a series of acquisition proposals in a bid to penerate an unexplored market that has a high density of non-resident Indian population.

FE

MARKETS

9)After staying lacklustre in the first half of the day, key equity indices lost ground in the mid-afternoon trades on selling pressure in the capital goods, power and IT stocks on Monday. Investors were apprehensive over concerns of the US government’s exact plans of the rescue package of $700 billion to the ailing financial system. The Sensex lost 47.36 points or 0.34% ending the day at 13,994.96 points, while the S&P CNX Nifty closed down 22.20 points or 0.52% at 4,223.05 points.

FE

10)AMID the pall of gloom, there seems to be some relief. Percentage of delivery-based trades on the bourses has shown some improvement, and now accounts for over 30% of all trades. Yet, market observers feel it is hardly any cause for celebration. They attribute the trend to a sharp rise in selling by foreign institutional investors, and an overall decline in trading volumes.

ET

11)The much awaited currency futures at the Bombay Stock Exchange (BSE) will kick start from the first week of October said Jagdish Capoor, chairman of BSE at sidelines of one of the conferences in Mumbai. BSE received an in-principle approval from the markets regulator on August 28 which was followed by mock sessions for the members including brokers, Indian institutions investors and individuals. BSE will be second exchange to offer the exchange traded currency futures after National Stock Exchange(NSE), while MCX is still to announce the formal date for the launch of currency futures.

FE

MUTUAL FUNDS

12)Principal Mutual Fund launched the Principal Emerging Bluechip Fund on Monday. The new fund offer, which opened for subscription on Monday, will close on October 10. The open-ended equity scheme seeks to achieve long-term capital appreciation by investing in equity and equity-related instruments of midcap and small-cap companies.

BL

13)Taurus MF has announced the launch of a one-month fixed maturity plan (Series I) from September 23. The plan envisages investing in high-quality debt instruments such as bank certificate of deposits, a press release issued stated.

BL

COMMODITIES

14)Gold climbed in Europe on Monday, reversing earlier losses in Asia, as the dollar weakened and fears spread that a $700 billion US plan to stabilise the financial sector may not succeed. Spot gold was trading at $872.50/874.50 an ounce at 0940 GMT, up from $871.15 an ounce at the nominal New York close on Friday. Gold prices soared nearly 15 per cent last week as fears over the outlook for the financial sector exploded.

BL

15)Mentha oil futures today rose on the Multi Commodity Exchange on increased buying by traders, supported by pick-up in demand in the physical markets. Mentha oil, for the near-month September contract gained 1.10 per cent at Rs 628.20 per kg at the MCX counter. The contract recorded business volume of 227 lots. Similarly, October and November contract were up by one per cent each at Rs 643.50 and Rs 654.90 a kg, recording business volume of 253 and 43 lots respectively.

BS

16)Pepper futures market, which opened lower moved up later on Monday and hit the ceiling at close on good domestic buying support. The bear operators were pressurising some of the brokers to liquidate and that led to the fall in the morning. However, as buyers became active the prices started moving up, trading sources told Business Line. October contract shot up by Rs 366 a quintal to Rs 13,140.

BL

17)Turmeric prices today was up in futures trading on buying on speculators, largely triggered by a likely rise in demand in the spot market due to festive season. The most-active October contract surged one per cent at Rs 3,830 a quintal on the National Commodity and Derivatives Exchange, clocking business of 1,670 tonnes.

BS

REAL ESTATE

18)Real estate companies such as Unitech, Peninsula Land, HDIL and Future Capital,the financial services arm of Future Group, are in talks with investors including some leading private equity funds for raising investments for their projects, after the collapse of Lehman Brothers, whose third party fund had promised investments in these property companies’ projects, according to industry sources.

BS

19)Reputed real estate developers in Mumbai and many parts of the country have started selling their commercial real estate which includes office, retail and hotels, rather than leasing them out. The developers are ready to sell properties at a rate which is seen attractive by the buyers today. The appetite is to purchase, build and sell off projects, with the prospect of gaining immediate returns, according to experts.

FE

COMMUNICATIONS

20)Unperturbed by the ongoing upheaval in the financial world, two global telecom majors – the UAE-based Etisalat and Italy-based Telecom Italia – are set to acquire 49 per cent stake in new generation telecom operators – Swan Telecom and Unitech Telecom, respectively.

BS

21)Telecom services provider Tulip Telecom on Monday announced that it has bagged the state-wide area network project worth Rs 95 crore in Madhya Pradesh. Tulip will establish the network on the build- own-operate & transfer(BOOT) model. It will deploy, manage and operate the entire network for a period of five years.

ET

22)Private telecom service provider Bharti Airtel has launched an upgrade for SMS services, which permits subscribers to search for content using SMS platform. The move allows users to search using their mobile phones, but without internet browsers.

BS

INFORMATION TECHNOLOGY

23)WHEN Goldman Sachs and Morgan Stanley gave up their independent investment banking status, it gave reason for Indian IT vendors to smile. As commercial banks, they now need to follow more regulations and this could mean more business for software service providers.

ET

24)Hyderabad-based Infotech Enterprises Ltd is close to acquiring a European company operating in the auto engineering space, for an estimated value of $30-40 million. Infotech Enterprises – which last year raised $75 million from General Atlantic – has already inked in- to a letter of intent with the target firm and hopes to conclude the acquisition deal by December-end.

BL

INTERNATIONAL

25)THE Wall Street that shaped the financial world for two decades ended last night, when Goldman Sachs and Morgan Stanley concluded there is no future in remaining investment banks now that investors have determined the model is broken. The Federal Reserve’s approval of their bid to become banks ends the ascendancy of the securities firms, 75 years after Congress separated them from deposit-taking lenders, and caps weeks of chaos that sent Lehman Brothers into bankruptcy and led to the rushed sale of Merrill Lynch to Bank of America.

ET

26)Mitsubishi UFJ Financial Group(8306.T), Japan’s largest bank, said on Monday it planned to take a stake of up to one-fifth in the US investment bank Morgan Stanley as part of a strategic alliance. Mitsubishi UFJ Financial Group said in a statement on Monday it would buy 10-20% of the common stock of Morgan Stanley.

ET

27)The Group of Seven finance ministers and central bank governors are maintaining “heightened close co-operation” and pledged on Monday to take necessary actions to safeguard the international financial system. In a statement released by the US Treasury, the G7 finance ministers and central bank governors said they held a conference call to discuss global financial markets and welcomed “extraordinary” US actions to take illiquid assets off of bank balance sheets.

FE

28)Crude oil futures rose to a two-week high on Monday, fueled by Washington’s financial rescue plan, crimped supply and fresh evidence of growing world demand. Light, sweet crude for October delivery, which expires on Monday, was recently up 2.2 per cent, at $106.87 a barrel on the New York Mercantile Exchange, after hitting $107.80, the highest price since September 8.

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

Headlines (22 September 2008)

GENERAL

1)Russian Defence Minister Anatoly Serdyukov will visit New Delhi next week to kickstart the preparations for the Indo-Russian summit in early-December, when Dmitry Medvedev is scheduled to embark upon his maiden India voyage as President. During his three day visit from September 28, Serdyukov will co-chair the 8th session of the Indo-Russian Inter-Governmental Commission on Military-Technical cooperation, with his Indian counterpart A K Antony to review the bilateral defence projects, including the vexed issue of cost escalation and delay in retrofitting of Admiral Gorshkov Aircraft carrier.

Indian Express
 
CORPORATE / INDUSTRY

2)RELIANCE Industries on Sunday formally announced the commencement of production from the famous D6 upstream assets. The first-of-its kind production from a deepwater field in India commenced on Sep- tember 17 and comes 40 years after the Bombay High was discovered by ONGC. To begin with, RIL will produce 5,000 barrels of crude a day which will reach a peak of 5.5 lakh barrel of oil equivalent per day (boepd). At this level, it could save $20 billion forex outflow for the country.

ET

3)PepsiCo on Sunday announced a $500 million investment in India in a clear endorsement of the attraction of emerging markets like India amidst a global financial meltdown. The $39-billion food & beverage giant’s plans cover the next three years. The fresh investments un- derscores that the company is betting big on the continuation of the Indian growth story that is pushing up the number of middle class every year.

FE

MONEY & BANKING

4)AFTER a gap of almost five years, banks have started charging some of the top-rated corporates loans at the benchmark prime lending rates (PLR). Till now, top-notch corporates could borrow at below prime – a negotiated rate which is well below PLR. But not any longer,thanks to the tight liquidity conditions in the money market. Since the time Reserve Bank of India(RBI) allowed banks to lend below PLR, the best- rated borrowers have availed loans at sub-PLR rates. For the first time last week, a large state-owned bank disbursed loans to a top-rated auto- mobile company and an airlines company at PLR which is 14%, a banker close to the development said.

ET

5)GETTING loan for your dream home is going to be tougher as banks may tighten lending norms, apart from increasing interest rates. Bankers expect stricter lending norms soon for all types of loans including housing, auto and personal loans. Banks may follow more stringent norms for deciding the creditworthi-ness of individuals and corporates so that they do not run into a Lehman-like crisis.

ET

6)In a move to soften the blow of Lehman Brothers’ bankruptcy in the Indian stock and asset markets, four banks are set to take over its structured products businesses in India. Banks likely to make the final cut include India’s largest bank, State Bank of India, French bank BNP Paribas, UK-based Standard Chartered Bank and Barclays. The final contours of the deal are likely to be decided next week.

BS

7)The board of directors of Dhanalakshmi Bank has approved a five per cent dividend to all its shareholders for last year. The AGM of the bank, slated for September 27, is expected to approve the dividend proposal. The bank’s net profit grew by 76 per cent to Rs 28.46 crore(Rs 16.14 crore) during 2007-08.

BL

INSURANCE

8)INSURANCE regulator Irda has decided to undertake a fresh review of the cost structure of Unit Linked Insurance Plans(Ulips) to make the product affordable and attractive for retail investors in a choppy market. One option is to pare the commission charges to make Ulips attractive for investors. The case could be bolstered by the fact that the ceilings on commission were fixed for traditional policies oriented towards protection, while Ulips has a high element of savings. A part of the premium in Ulips is invested in equities or government bonds, depending on the choice made by the policy- holder. The returns are reflected in the increase in the value of the unit, mirrored by the net asset value(NAV) declared by the firm.

ET

9)Tata Group’s life insurance arm, in which American International Group – which last week got a new lease of life – has 26% stake, plans to ramp up its branch network by adding another 100 branches in the next 12 months.

FE

MARKETS

10)”BULLS are back in the race, but supported by US Fed-sponsored crutches. The question is how far and how fast can they run in this state,” remarked a trader when asked about his views on Friday’s rally. This perhaps sums up the mood on Dalal Street, even as it appears that the market could sustain the upward momentum for the next few sessions. Brokers say the mood on the street is one of healthy scepticism, and that covering up of short positions alone can take the market higher. Given that the macro environment still appears precariously poised, it is doubtful that investors would be keen to buy at higher levels.

ET

COMMODITIES

11)Despite recent spikes, jeera, chilli and turmeric futures on NCDEX are expected to remain bearish in the short term. Jeera(cummin seed) for October delivery on NCDEX on Friday hit the upper circuit at Rs 11,097 a quintal on short covering. Though jeera contracts on NCDEX may witness minor gains, enough inventory is available to meet the festival demand and may pressuire the prices, said an analyst.

BL

REAL ESTATE

12)Indian property prices, which had taken off like jet planes, appear to be losing altitude after bad debts owing their origin to real estate brought down the US financial market to its knees. Marketmen see prices cooling and projects being held up for want of cheap funds, but don’t expect the market to crash. Raising funds from American and Western European investors, who accounted for a bulk of overseas money coming to India, will be difficult. “Developers will have to look at new avenues like middle-east and Korea,” said global realty consultant Jones Lang LaSalle Meghraj country head Anuj Puri. The first to be hit would be commercial property prices, although a correction in re- sidential segment too is expected. Rates had almost doubled in the three years leading to 2007, when interest rates started hardening. “Negative sentiments from events like these (collapse of Lehman Bro- thers, Merrill Lynch and others) will have a bearing on the banking and financial services’ real estate requirement in India,” Puri said.

FE

13)AS the realty sector rushes into affordable housing to survive the slowdown, developers are innovating to cut costs and delivery time to retain the interest factor. Morgan Stanley-backed Mantri Developers, a leading luxury-homes maker, is working on ‘factory homes’ as its foray into budget or affordable housing. Mantri is in discussions with a potential German realty partner to show up with 6000 “modular, pre-fabricated homes”. The Bangalore-based firm that kicked off real estate development building small units for the Maharashtra Police a decade earlier, is projecting a 70% reduction in site work to churn out between 15-20 homes a day. Launching later next year, the firm’s latest venture will build homes for the middle classes formed to handle these projects, said MD Sushil Mantri.

ET

BUSINESS PROCESS OUTSOURCING

14)IN THE early days of the business process outsourcing (BPO) industry, two kinds of people were extremely busy: The call centre agents who barely got breathing space between calls and the HR managers, trying hard to retain people. While the business continues to expand at a brisk pace, keeping the agents busy, it’s the HR managers who can relax now. That’s because attrition rate, which averaged 60% a year and in several cases had gone over 100% just a few years back, has drastically dropped to an average of 30% in some cases it’s much lower, below 22%! Earlier the companies had to hire several hundred new agents every few months to keep the business going and now with the sector having matured, many people see it a long term career with day-time work options. The mundane BPO job has not only become more attractive but also more stable.

ET

15)GENPACT, the country’s largest BPO firm in terms of revenue and headcount, is in the race to acquire Lehman Brothers’ Mumbai-based captive back office unit for an undisclosed sum. Genpact has been scouting for captives and niche companies in India for acquisitions.

ET

INFORMATION TECHNOLOGY

16)If it was “God’s Own Country” to woo tourists, it is now “God’s Own e-State” to attract investment to Kerala’s IT sector. “After tourism, IT is the next big opportunity for the State,” said Mr N Radhakrishnan Nair, CEO, Technopark.

BL

17)IT firm Patni Computer Systems aims to double its revenue from the Asia-Pacific region in the next three years with increased focus on the business initiatives in the region, a top company official said. Patni is also eyeing buyouts in the region, especially a few deals, the official added.

BS

INTERNATIONAL
 
18)JAPAN’S Nomura Holdings is interested in buying the European operations of US investment bank Lehman Brothers, according to reports on Sunday, while Barclays will bid for parts of the business, a person familiar with the matter said.

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

Headlines (19 September 2008)

GENERAL

1)Tata Motors on Thursday evinced keen interest in Karnataka government’s offer to give it 1000 acre in Dharwad. The company assured the government that it would come back in a fortnight’s time with a decision. Asked whether Tata Motors was looking at relocating the plant from trouble-torn Singur in West Bengal, Tata Motors managing director G Ravikanth said the company would consider alternatives, if required.

TOI

ECONOMY

2)AFTER declining for three successive weeks, inflation rose marginally to 12.14% for the first week of September mainly due to dearer food items such as fruits and vegetables. It was a 0.04% rise in inflation for the week ended September 6 from 12.10% a week earlier, even as some fuel items such as ATF turned cheaper on account of falling global crude oil prices. However, the increase in the inflation figure was described as ‘stable’ by the finance ministry.

ET

CORPORATE / INDUSTRY

3)Lupin Ltd has bought 60 per cent stake in South African drugmaker Pharma Dynamics(PD). The company has not disclosed the cost of acquisition. This is Lupin’s third acquisition this year. The company acquired German drugmaker Hormosan Pharma in July and it picked up signficant stake in Generic Health, Australia in August.

BL

MONEY & BANKING

4)The rupee depreciated marginally against the dollar on Thursday, pulled down by the meltdown in global indices. The domestic currency opened lower at 46.63/65, and weakened further to touch an intra- day low of 46.79. It recovered to close at 46.41/42, against the previous close of 46.34/35.

BL

5)INDIAN banks appear to be headed for better profits this quarter in sharp contrast to banks in the West which are issuing profit warnings amidst writedowns. Most banks in India are likely to show better profits for the quarter ending September compared with the previous quarter(June 2008).

ET

INSURANCE

6)CRISIL, India’s leading rating agency, continues to have the AAA/ Stable rating for financial strength rating of SBI Life Insurance. Last financial year, SBI Life become the first life insurance company to get the highest rating of ‘AAA/Stable” from CRISIL. This rating reflects highest financial strength to meet policyholder obligations.

FE

7)The Anil Ambani-promoted Reliance Life Insurance on Thursday said its premium income has grown by 152 per cent in April-June this fiscal as compared with the overall life insurance industry growth of only 1.6 per cent in the same period.

BL

MARKETS

8)Putting to end seven days of losses, the markets bounced back on Thursday after finance minister P Chidambaram put to rest fears of any US-like meltdown, saying that the credit crisis gripping the country posed to threat to public sector banks in India. Also, positive cues from the European bourses helped lift market sentiment. The 30-share Bombay Stock Exchange(BSE) Sensex added 52.70 points or 0.40% ending the day at 13,315.60 points. The broader Nifty of the National Stock Exchange(NSE) gained 29.90 points or 0.75%, closing at 4,038.15 points.

FE

9)THERE is a common thread between US and Indian markets in the valuations being assigned to financial institutions. In both markets, stodgy conservative banks have gained leadership in terms of stock valuations, while banks with exposure to structured products and large global business, and which are known for their innovation in finance have taken a hit. India’s largest bank State Bank of India has re- gained its numero uno position in the market capitalisation sweep- stakes for financial institutions, toppling ICICI Bank which is now neck-to-neck with mortgage lender HDFC which is much smaller in terms of asset size.

ET

10)RETAIL broking firms, staring shrinking revenues due to the sustained down-trend in stock prices, have now come up with a new way to generate cash for their business. Some of the broking firms have started approaching their customers with the concept of ‘advance brokerage’. In this, the client pays a certain amount of money upfront and then trades without paying any brokerage on individual trades. Depending on the quantum of upfront payment, the customer also stands to gain by way of reduced brokerage.

ET

11)The National Securities Depository Limited (NSDL), India’s largest depository holding more than 80% of the securities held in dematerialised mode, will be conducting a round of series of Investor Depository Meets(IDMs) in Mumbai. These seminars would aim at spreading awareness about the depository processes and about safety and benefits of depository system. They will provide an opportunity to investors to interact directly with NSDL as well as its Depository Participants (DPs). Investors queries on demat, suggestions and feedback will be solicited. The Venue for the event would be Borivali, Dombivli, Malad and Vasai and will be organised between September 20-28.

FE

IPO

12)Softline Software Services is set to expand its operations in India and some markets overseas. Engaged in sale of software products for the last 17 years, Softline last year forayed into software services. The company is considering an IPO to partly fund its expansion.

BL

RIGHTS ISSUE

13)Aditya Birla group company Hindalco Industries’s rights share issue will open on September 22 and close on October 10, according to draft documents posted on Sebi website on Thursday. The company is offering three shares for every seven held by shareholders, on rights basis, at Rs 96 per share having a face value of Re 1.

BS

MUTUAL FUNDS

14)Reliance Mutual Fund has earned certificate of finalist recognition in two categories, ‘best sales team’ category and ‘Website Category-Overall design’ in the 2008 International Business Awards. The International Business Awards are the only global, all-encompassing business awards programme honouring great performances in business.

FE

15)AMID the high volatility in the yellow metal, gold exchange traded funds(GETFs) have seen a surge in assets under management(AUM) which have risen by over 46% since January to Rs 694 crore at the end of August ’08. However, what’s impressive is the 10% growth in the AUM of these ETF’s between July to August this year despite the price swings from high levels of $983 per ounce in July to $787 on August 19. Gold prices however bounced backed later during the month. According to Rajan Mehta, executive director, Benchmark Mutual Fund, there has always been a psychological difference in the investment pattern of gold vis-a-vis the equity markets. He added that while equities tended to attract money when stock prices were moving up, money flowed into gold when stock prices move southwards. “More investors have started to invest systematically in gold ETFs, buying a few units every month,” he said. Benchmark GETF has seen the number of investors growing from 14,000 in February 2007 to 33,000 in August.

ET

16)ICICI Prudential Mutual Fund on Thursday launched a quarterly debt interval fund, which will be closed for subscription on Tuesday, according to the mutual fund’s website.

BS

17)Escorts Mutual Fund has sought the Securities and Exchange Board of India’s (Sebi) approval to launch an open-ended growth plan that will invest in low-priced shares, according to information on capital market regulator’s website.

BS

COMMODITIES

18)Pepper futures market moved up on Thursday and crossed the first circuit on buying support. Bear operators were seen trying to cover back their sales. On the other hand, local dealers, who are not getting any replacement from the farmers, were approaching the exchange for meeting their requirements, market sources told Business Line.

BL

19)THE yellow metal is again slipping out of the comman’s reach. With the marriage and festive season around the corner, prices are approaching new peaks after financial turmoil in global markets, making the commodity almost unaffordable for the retail user. As equities melted across the globe and investors rushed to safe havens, gold set a record with the prices rising Rs 1,265 per 10 gm in a single day, crossing the psychological level of Rs 13,000. In Mumbai, standard and pure gold shot up by Rs 1,265 and Rs 1,270 to Rs 13,020 and Rs 13,090 respectively. The metal was last seen above Rs 13,000-level on July 21 this year, when prices settled at Rs 13,425.

ET

REAL ESTATE

20)THE department of industrial policy & promotion (DIPP) and the Reserve Bank will shortly meet to evaluate the situation arising out of Lehman’s collapse as the US giant has $500 million investment in Indian real estate projects. Foreign investment norms for real estate do not allow repatriation of funds within three years of investment. The meeting will discuss a mechanism to deal with cases like Lehman, when foreign investors in real estate go bust. One of the key questions is what happens to the failed investor’s assets which are bound by certain lock-in periods. Lehman has its real estate assets spread across the country. The US giant invested $200 million last year in DLF promoter group company DLF Assets which holds office properties in Gurgaon.

ET

COMMUNICATIONS

21)Mobile phone users looking to change their service provider without changing their number will have to wait till the end of 2009 for the all-India roll-out of mobile number portability services, Telecom Secretary Siddharth Behura today.

BS

KNOWLEDGE PROCESS OUTSOURCING

22)Cost arbitrage played a big part in US companies offshoring work to India. But wages and infrastructure costs have increased mainfold in the BPO sector in India. Multiple locations are now competing with India on cost. To tide over the problem, Indian companies are now focusing on providing higher value-added services. BPO companies have growing from providing just voice-based marketing and CRM(customer relationship management) services to transaction processing, and to establishing shared services centres for outsourcing functions such as accounts, receivables and HR. They are now building capabilities on high-end analytics in finance and marketing. Also, companies are adding capabilities through KPO acquisitions. The KPO opportunity could be as high as $10billion by 2010. KPO in legal process, market research, analytics, pharma, engineering and animation hold promise.

FE

INFORMATION TECHNOLOGY

23)Even amidst the ongoing global financial turmoil, India’s fifth largest IT services exporter HCL Technologies said on Thursday it would be keen on large ‘transformational’ acquisition of up to $1-2 billion within the next three years, as part of its strategy for do- minant positioning in the global IT market.

BL

INTERNATIONAL

24)In a coordinated move on Thursday, central banks worldwide pumped in $247 billion to revive the world financial system, hit by what former Federal Reserve governor Alan Greenspan has described as ‘the crisis of the century’. This is the biggest ever lifeline offered to the world financial markets, where Morgan Stanley became the latest to join the growing list of investment bankers seeking a bailout.

FE

25)Lloyds sealed a rescue takeover of HBOs on Thursday to create a dominant British mortgage and savings bank in a $22-billion deal helped through by the government. A change in competition law ensured the credit crunch did not claim another victim, after HBOs shares were battered in the past week by fears it was struggling to raise funds in wholesale markets.

ET

26)MORGAN Stanley, which saw its stock pummelled on Wednesday on worries it may not survive the credit crunch, has held preliminary takeover talks with Wachovia, a person familiar with the situation said. Separately, CNBC reported that Morgan Stanley was having deal discussions with CITIC, the China-controlled conglomerate that owns brokerage firm CITIC.

ET

27)OIL rose to $100 on Thursday as a move by global central banks to add liquidity to money markets rallied world stocks and the united States energy sector struggles to restart operations shut by Hurricane Ike. US crude traded up $2.62 to $98.78 a barrel after touching a high of $100.10 earlier, adding to a $6 gain on Wednesday. London Brent crude rose $2.51 to $97.35 a barrel.

ET

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd http://www.karvy.com
http://www.khojhyderabad.com
http://www.indiacorporateadvisor.com
http://www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd http://www.KARVYGlobal.com
KARVY Realty (India) Limited http://www.karvyrealty.com
Economic Times http://www.economictimes.com
The Financial Express http://www.financialexpress.com
Business Line http://www.businessline.in
Business Standard http://www.business-standard.com
The Times of India http://www.timesofindia.com
The Hindu http://www.hindu.com
Deccan Chronicle http://www.deccan.com
The New Indian Express http://www.newindpress.com

Headlines (17 September 2008)

GENERAL

1)India and China will hold the next round of the two-day boundary talks in Beijing from Thursday during which their special representatives will explore ways to resolve the festering issue affecting the bilateral ties.

Indian Express

ECONOMY

2)India is set to amend the Atomic Energy Act, 1962, to allow the entry of private players in the generation of nuclear power. The Manmohan Singh administration is working overtime to bring an amendment of this effect through a Bill in the upcoming session of Parliament. The Bill will also include allowing FDI in nuclear power generation.

FE

CORPORATE / INDUSTRY

3)Home textiles major Welspun India(WIL) has announced the demerger of its distribution and marketing and investment divisions into two separate companies. The firm said that such a res-structuring will allow it to have strategic focus on specific tiers of the businesses and therefore enable better business control, flexibility on business operations and help leverage international focus of the group.

BS

MONEY & BANKING

4)THE rupee’s weakness continued on Tuesday, as it crept slowly but surely towards the 47-mark against the US dollar, thereby posting its steepest intra-day fall in almost a decade. Heavy dollar demand from foreign banks, coupled with dollar outflow from foreign investors in the backdrop of the sliding stock market severely dented sentiment for the local unit. It touched a low of 46.99 during early trade, its weakest level in over two years. However, consistent central bank intervention at lower levels halted its slide. The rupee finally ended the day at 46.88/89 against the dollar, considerably weaker than its previous close of 46.05/06.

ET

5)THE move by Lehman Brothers Holdings, the fourth largest investment bank, to file for bankruptcy in the US will impact the country’s largest private bank, ICICI Bank. The bank – the second biggest lender after State Bank of India will have to take a hit of $28m on account of the additional provisioning that ICICI Bank’ UK sub- sidiary will have to make. During this quarter, ICICI Bank pared its credit defaults swaps (CDS) exposures to overseas corporates from $65m-$80m. Some of the large state-owned banks are also likely to take small hits because of mark-to-market provioning on their over- seas investments.

ET

INSURANCE

6)INDIAN non-life insurance companies are anxiously waiting to see the impact of AIG’s troubles on the ratings of its reinsurance arm. Any downgrade of the parent would have a ripple effect on its arm. If the reinsuring arm’s rating falls below the BBB prescribed by Irda, local insurers will have to look for a new reinsurer.

ET

7)Insurance Regulatory Development Authority (Irda) on Tuesday said Tata AIG Life and Tata AIG General Insurance are well equipped to settle claims based on an analysis of their accounts as on March 2008. “We have asked them to file a report on the recent turmoil at AIG. However, we gather the two companies are comfortable on their solvency margins and there is nothing to worry,” said Irda chairman J Hari Narayan.

ET

MARKETS

8)Still reeling from turmoil in the global financial sector, the stock markets opened in the red on Tuesday, but recovered all its losses as several central banks worldwide stepped in inject liquidity, and also on expectations of a Fed Reserve cut in US interest rates. It was buying by domestic financial institutions that lifted stocks later in the day. There was a lot of short covering in anticipation of a Fed rate cut that might drive up stocks again. However, FII selling was unabated. They were net sellers of stocks for Rs 1,303.41 crore, while domestic institutions were net buyers for Rs 612.36 crore, according to the combined provisional BSE NSE data. The Sensex opened with a negative gap of 445 points and touched an intra-day low of 13,051.73; it finally made a smart recovery to close the day at 13,517.80, just 12 points lower. The broader Nifty index too ended flat at 4,074.90; it had fallen below the 4,000 mark in early trade.

BL

9)Currency futures trade on NSE saw trades on nearly one lakh contracts,the highest since its launch last month. “Currency futures saw a trading volume of Rs 456.88 crore arising out of 97,642 contracts,” said an NSE report. Total number of contracts and the turnover doubled as the number of contracts traded touched nearly one lakh mark as compared to 50,386 contracts valued at Rs 232.06 crore traded on Monday. Currency futures were launched on August 29 on NSE. On that day, the exchange had registered trade of 65,798 contracts worth Rs 292.05 crore.

BL

BUYBACK

10)Rain Commodities said it will buy back its fully paid-up equity shares from the existing shareholders and beneficial owners of the firm’s shares. The number of shares would depend upon the average price paid for the shares and the amount deployed in the buyback.

BS

MUTUAL FUNDS

11)Mutual Fund houses have started providing innovative value added services(VAS) to investors in order to survive future competition. Many new fund houses are set to enter the Indian mutual fund(MF) industry in the coming months and MF players feel that those players that provide better services will survive competition. ICICI Prudential MF’s mobile based services that provides 24×7 access to investments in ICICI Prudential schemes is one such VAS. Also, recently launched Edleweiss MF provides services like simplified application form and grievance redressal mechanism.

FE

COMMODITIES

12)National Commodity and Derivatives Exchange has announced a change in trading hours due to sun outage from September 24 to October 8. During this period, the day trading session will remain closed between 11:25 am and 12:05 pm for sun outage, when members may face network connectivity issues, a relase from the exchange said today. Trading hours for farm commodities, except robusta cherry AB coffee, will end at 5:45 pm, compared to 5 p.m now, on week days, NCDEX said.

BS

13)CONCERNED over increasing delivery defaults on the exchanges, commodity market regulator Forward Markets Commission(FMC) has decided to hike penalty to 3% and has authorised exchanges to deliver the commodity. “To protect the interest of the buyer, we have increased the penalty fee to 3% from earlier 2.5%,” FMC chairman BC Khatua said.

ET

14)The pepper futures market on Tuesday recovered on tight supply position coupled with bullish sentiments. September contract moved up Rs 261 a quintal to close at Rs 12,320 on NCDEX, but still much below the spot prices of MG 1 which was at Rs 13,200 a quintal.

BL

15)Ignoring weak global cues gold prices today rose for the fourth day, adding another Rs 80 to close at Rs 11,890 per 10 gm on the bullion market in New Delhi on increased demand ahead of the marriage and festive season. Weakening global trends, where the precious metal fell by seven dollar to reach $779.65 an ounce failed to have any negative impact on the sentiments, they added. On the other hand, silver ready dropped by Rs 175 to Rs 18,350 and weekly-based deivery by Rs 215 to Rs 18,050 per kg owing to sluggish demand.

BS

REAL ESTATE

16)The impact of the collapse of the Lehman Brothers and the buyout of Merill Lynch is sure to spread like a contagion. However, realty operators in India are putting up a brave front and maintaining that there will be no impact on the real estate sector of the country. The impact of Lehman Brothers filing for bankruptcy will impact those Indian realty operators who have not structured their agreement care- fully, opines Sanjay Dutt, joint managing director, Cushman & Wake- field.

FE
 
BUSINESS PROCESS OUTSOURCING

17)Leading BPO service provider WNS announced a multi-year contract to provide healthcare revenue cycle management services to EBI LLC (a Biomet Inc. subsidiary). Under the five-year agreement, WNS will deliver service level improvemnts, utilising high-end analytics to optimise collections and order processes, said a company release in Mumbai.

BL

INFORMATION TECHNOLOGY

18)Bank of America’s takeover of Merrill Lynch has cast a pall of uncertainty over the latter’s outsourcing deals with TCS and Satyam, according to industry sources. Insiders say that Merill Lynch was a significant client for the two IT firms, and it will now be a “wait and watch” situation for the IT companies.

FE

19)THE CURRENT economic crisis in the US has trigered Hyderabad based Satyam Computer Services to expand its presence in the Middle-East. With the Middle-East market set to grow in terms of IT services spending, the firm expects to clinch more deals but small- sized ones. The de-risking strategy could help the firm cushion the im- pact of receding revenue from the US market, albeit marginally.

ET

20)Wipro Infotech is learned to have bagged an over SAR 100 million (Rs 121.1 crore) information technology engagement contract from King Abdullah University of Science and Technology(KAUST) through its joint venture company in Saudi Arabia.

BL

INTERNATIONAL

21)Oil fell more than 4 per cent on Tuesday on rising concern that turmoil in global financial markets will further undermine fuel demand and send investors into safer havens. Reports that US oil infrastructure had escaped Hurricane Ike also weighed on markets, which fell more than $5 on Monday after Lehman Brothers sought bankruptcy protection. US crude traded down $4.30 to $91.41 a barrel by 1133 GMT, just off a seven-month low of $91.11 a barrel earlier. Brent crude fell $4.54 to $89.70 a barrel.

BS

22)Barclays Plc, the UK’s third-biggest bank, is in talks to buy assets from bankrupt Lehman Brothers Holdings Inc two days after abandoning plans to acquire the entire securities firm. Barclays is weighing a bid for Lehman’s broker-dealer unit to increase its US securities revenue, three people familiar with the situation said.

BS

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