1)On November 10 or 11, the national flag will be hoisted on the moon. When the moon impact probe, bearing the Tricolour, ejects from the Chandrayaan-1 spacecraft and crashlands on the lunar surface, it will mark India’s leap into the club of countries aiming for the moon.
CORPORATE / INDUSTRY
2)IT IS a clear sign of desperate times. Two of the fiercest rivals for control of Indian skies, Jet Airways and Kingfisher Airlines, embarked on an extraordinary move to work out an operational alliance in a bid to rein in runaway losses.
3)THREE of India’s leading generic drug makers, Dr Reddy’s Laboratories, Ranbaxy Laboratories and Wockhardt, are in the race for Germany’s largest health insurer Allgemeine Ortskrankenkasse(AOK)’s $3.5-billion drug supply contract as the world’s second largest drug market looks for ways to curb rising healthcare costs.
MONEY & BANKING
4)After crossing the 49-mark last week, the rupee recovered against the dollar on Monday, though the intra-day movement was range-bound. The Sensex surged by over 780 points following comments by the Finance Minister that the Government would take further steps, if necessary, to improve the tight liquidity situation. The positive sentiment in the equities and the 150 basis points cut in CRR, which came into effect on Saturday, helped the rupee gain, said dealers. The rupee opened at 48.35 and closed at 48.25, against Friday’s close of 48.46.
5)AXIS Bank reported a 76.8% rise in net profit for the second quarter ended September 30, 2008 due to strong growth in advances and fees, accompanied by a rise in low-cost deposits. The bank registered a net profit of Rs 403 crore in the quarter against Rs 227.8 crore during the corresponding period last year. For the half year ended September 30, the net profit rose 82% from Rs 403 crore to Rs 733.1 crore.
6)Domestic stocks bounced back on Monday aided by heavy short covering as governments worldwide stepped up measures to increase liquidity in the world economy. Reassurance from the Finance Minister on the country’s financial stability, and his statement that the Government would take measures to improve liquidity initiated the ‘bounce back rally’ today, according to marketmen. However, the rally was on the back of thin volumes; and despite the world markets trading in the green, FIIs continued to be net sellers in Indian equity. On Monday net equity sales by them amounted to Rs 1,060 crore. Domestic institutions were net buyers for Rs 582 crore. The Sensex surged 7.42 percent from its previous close, gaining 781 points to end the day at 11,309. The Nifty gained 6.42 per cent, closing at 3,490.70.
7)Indian equity indices staged on impressive comeback on Monday, snapping a five-day losing streak. The domestic markets rebounded on the back of short-covering and strong cues from the Asian and European markets. Indian markets started the day on a positive gap. Banking stocks, which were till last week hammered, out-performed the benchmark index on Monday. Bankex, the banking index of BSE, gained 654.34 points, or 12.30%, and closed the day at 5,973.84 points. All the BSE sectoral indices that had seen their 52-week lows last week, ended on the positive terrain on Monday.
8)Mutual fund investors in equity schemes are not yet rushing to redeem their units but inflows have dried up substantially, said mutual fund distributors. Analysts said the fall in market has been so steep and sudden that there’s inertia; nobody wants to exit at a loss. But there could be some redemptions when the market starts picking up. K Sridhar, vice president at Karvy said there’s not much redemption but inflows into equity schemes have dried up by 71 per cent this year, according to the data released by the Association of Mutual Funds in India(AMFI). However, last month saw net inflows of Rs 604 crore in equity schemes against redemptions of Rs 232 crore in August 2008.
9)JM Financial Mutual Fund will launch JM Fixed Maturity Fund-Series XIII-Quarterly Plan 2 on Tuesday. Subscription to the scheme will re- main open until Wednesday, a notice from the fund house said today. The quarterly income plan will deploy its entire corpus in short-term debt and money market instruments with a similar maturity profile.
10)HDFC MF will Tuesday launch a 90-day fixed term plan, while it will float 181 and 370-day debt plans on Thursday, the second largest Indian mutual fund said in a notice today. HDFC FMP 90D October 2008(1) will close for subscription on Wednesday, while initial offers of HDFC FMP 370D October 2008(1) and HDFC FMP 181D October 2008(1) will end Oct 20 and Oct 23 respectively.
11)Notwithstanding the government’s ban on futures trading on eight commodities and the turmoil in stock markets, Indian commodity exchanges continued their dazzling run. The turnover of 22 commodities exchanges across the country recorded a robust growth of more than 47% during the first half of 2008-09 and is on track to reach the targeted 57 lakh crore by the end of 2008-09.
12)India’s mentha oil futures may rise this week on expectations of higher demand for the medicinal commodity as winter approaches, analysts said on Monday. Bargain buying, after a slump that dragged the far-month contract to a record low on concerns of slowing ex- port demand amid a global slowdown, will also support prices, analysts added.
13)Gold prices in the domestic market fell by Rs 75 to Rs 13,345 for 10 gm on Monday even as it gained $4.30 an ounce on the London Metal Exchange. Pure gold was down by Rs 80 to Rs 13,405. Gold prices, which scaled to a life-time high last week, may tumble further with the rupee expected to strengthen making the dollar-priced gold cheaper, said an analyst.
14)While banks do not anticipate an immediate decrease in lending rates after the 150 basis-point cut in Cash Reserve Ratio by the Reserve Bank of India, real estate developers expect the measures to soften home loan rates for its consumers. Demand for real estate property has decreased by nearly 25-30 per cent in the country over the last 18 months, when home loan rates soared from an average of 7 per cent to as high as 12-13 per cent.
15)IF you bought a low-cost Chinese mobile phone recently, the investment might just turn out to be expensive. Because most of the Chinese mobile phones and locally-assembled handsets do not carry the International Mobile Equipment Identity or IMEI number, a 14-digit number used to identify valid devices. There are about 1.6 crore China-made and other locally-assembled handsets at present that don’t have an IMEI number. Calls from such phones may be barred and users will have to buy new handsets with genuine IMEI numbers, according to a recent note by the department of telecom(DoT). All mobile phones that have all zeroes or no zeroes in their IMEI codes will also be barred.
BUSINESS PROCESS OUTSOURCING
16)The next 12 to 18 months could see large Indian IT service providers making bids for captive business process outsourcing centres, the prelude to which was the recent acquisition of Citigroup Global Services Ltd by Tata Consultancy Services Ltd. Industry experts believe one of the principal motivations for such buys is the large business contracts that come with it. Also, it would help the IT services providers, who were late entrants into the BPO space, to scale up their BPO operations.
17)Even as IT majors are hiring in fewer numbers this financial year on the back of a slowing global economy and trauma in the banking, finance and insurance services(BFSI) sector, Indian business process outsourcing(BPO) firms – captive and pure play – appear bullish. They are increasing headcount in the country, attributing their optimism to business ramp-ups over the last couple of months and an increased acceptability of offshore work.
18)Getting a passport would soon become easier with lower processing time and online filing. Tata Consultancy Services(TCS) on Monday signed a Rs 1,000-crore, six-year deal with the ministry of external affairs to implement the ‘passport seva project’ that envisages issuance of new passports within three working days and a ‘tatkal’ scheme to issue passports on the same day, after police verification.
19)STOCK markets rejoiced after governments worldwide launched multi-billion dollar bailouts on Monday to shore up banks, and Britain called for a new Bretton Woods agreement to reshape the world financial system. Major Wall Street indexes were up more than 5% in early trade, clawing back some of the major losses last week, when the Dow fell 18%. The MSCI world equity index was up 5% after tumbling 20% last week to a five-year low. Britain, Germany, France, Italy and other European governments announced rescue packages totalling hundreds of billions of dollars that were designed to combat the global financial crisis, in which the credit markets have seized up at a time when major economies appear headed toward recession.
20)Royal Bank of Scotland Group Plc, HBOS Plc, and Lloyds TSB Group Plc will get an unprecedented 37 billion pounds($64 billion) bail-out from the UK as governments across Europe act to avert a banking collapse.
21)MITSUBISHI UFJ Financial Group(MUFG) completed its purchase of a stake in Morgan Stanley on Monday with US government support, helping close a deal that investors feared would fall apart. Morgan Stanley shares soared as much as 65% after Japan’s largest bank bought the stake – a day earlier than expected – after a week in which the New York bank’s stock plunging by more than half on fears Morgan Stanley might not survive.
22)Crude rose, rebounding from last week’s 17 per cent plunge, as Governments in the US and Europe acted to stem the worst financial crisis since the 1930s. Crude followed stock market higher after the UK provided $64 billion of capital to its banks and the Federal Reserve said it will lend unlimited dollar funds to financial institutions. Crude oil for November delivery rose as much as $4.10, or 5.3 per cent, to $81.80 a barrel in electronic trading on the New York Mercantile Exchange.
FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd www.karvy.com
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