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