Headlines (15 October 2008)


GENERAL

1)The Assembly elections in Chhattisgarh, Madhya Pradesh, Mizoram, Rajasthan and Delhi will be held between November 14 and December 4, the Election Commission announced on Tuesday. No decision has been taken on holding the polls in Jammu and Kashmir.

Hindu

ECONOMY

2)Even as airlines struggle with dwindling passenger numbers, the aviation industry awaits the four-day spectacular show in Hyderabad, beginning Wednesday. The India Aviation-2008, an aviation conference and expo, promises to the stakeholders a peep into the shape of things to come.

BL

CORPORATE / INDUSTRY

3)RELIANCE Industries (RIL) has chalked out an elaborate plan to venture into the power business. The plan includes an integrated project comprising coal mining, a coal-to liquid (CTL) plant, a 1,000-mw power plant based on coal rejects and a fly-ash utilisation unit. The firm has entered into an agreement with the US-based energy majors Exxon-Mobil, Headwaters and the German engineering firm Uhde GmbH. The 1,000-mw plant in Angul (Orissa) is proposed to be put in partnership with Torrent Power.

ET

4)TATA Motors has acquired a 50.3% holding in Norway-based electric vehicle major Miljo Grenland/Innovasjon for Rs 9.4 crore(Kroner 12 million) through its UK subsidiary, Tata Motors European Technical Centre. The existing shareholders will retain the remaining stake in the company.

ET

MONEY & BANKING
 
5)The rupee erased most gains against dollar as banks bought the green back to meet demand from oil companies and other importers, dealers said. The Indian unit closed at 48.07 to a dollar compared with 48.25 on Monday. It had risen to an intraday high of 47.57 today.

BS

6)As the festive season nears, banks are not only offering higher deposit rates but also reducing rates for their retail loans. This is despite a tight monetary policy. Two major state-owned banks Bank of Baroda and Union Bank of India – have decided to slash rates by 25 basis points on their home loan rates. They are keen to continue with the lower rates even after the festive season if the Reserve Bank of India(RBI) announces cuts in repo rate and the statutory liquidity rate(SLR) in its forth coming credit policy on October 24.

FE

7)The South Indian Bank (SIB) recorded a rise of 44.80 per cent in net profit to Rs 51.68 crore for the second quarter of the current financial year as against Rs 35.69 crore in the corresponding quarter last year.

BS

MARKETS

8)Profit-booking in blue-chip companies in the second-half of the session on Tuesday trimmed gains in shares, which ended near the day’s low. The benchmark Bombay Stock Exchange’s 30-stock index ended up 174.31 points, or 1.5 per cent, at 11,483.40, helped by gains in technology counters. It had gained as much as 5 per cent to 11,870.22 in initial trade due to a sharp overnight rally in the US. On the rival National Stock Exchange, the 50-stock S&P CNX Nifty rose 27.95 points, or 0.8 per cent, to 3,518.65. It had risen to 3,648.25 in early trade.

BL

9)THE market may not be out of the woods yet, but going by anecdotal evidence, this may be a good time to start bottom fishing in frontline stocks. Reason: attractive valuations apart, there is too much pessimism among market participants. Brokers feel that when the recovery starts, it would be the frontline stocks leading the rally. Though most foreign equity analysts view the recent rebound in equities as unstable recovery, a section of market watchers back home, feel Indian market is very near to bottoming out. “It is possible that the market may have bottomed out,” said Karvy Stock Broking vice-president Ambareesh Baliga. According to Mr Baliga, the ‘pain’ (referring to the bearish phase) will last for a long time. Though valuations are compelling, most investors are not convinced that now is the time to start lapping up shares, he added. “We’re advising investors to start buying once the market attains some stability, even if it means key stocks appreciating 10% from current levels. For sure, this is the time to buy large-cap stocks; the rally will begin with large-cap stocks,” Mr Baliga said.

ET

10)THE government and the stock market regulator Sebi are keeping a close watch on short-selling in the Indian stock market. The finance ministry is understood to have sought data on short-selling from Sebi. While there is no immediate move to ban short-selling, both the regulator and the government are examining if there was a need to further improve disclosure norms.

ET

IPO

11)Public sector Oil India Ltd (OIL) is unfazed by the financial market turbulence and intends to proceed with its planned initial public offering (IPO) after receiving Government Clearance.

BL
 
BUYBACK

12)India’s largest real estate developer DLF has rescheduled the proposed buyback of its equity shares to October 17 in order to comply with some regulatory requirements. The buyback offer was earlier scheduled to open on October 15.

ET

MUTUAL FUNDS

13)In a bid to help the domestic mutual fund industry, which is reeling under a severe liquidity crisis, the Reserve Bank of India(RBI) has decided to allow them to raise funds against certificates of deposits (CDs). The central bank will also conduct a special 14-day repo auction, at which it would infuse Rs 20,000 crore to meet the liquidity requirements of MFs.

FE

14)Lotus India Mutual Fund has filed offer document for an equity scheme that will invest in shares of companies featuring in the S&P CNX Nifty Index, as per information on the Securities and Exchange Board of India website.

BS

15)Birla Sun Life Mutual Fund today launched Birla Sun Life Fixed Term Plan – Series BH, a 370-day income plan that will close subscription on October 20, an official with the fund house said. The plan will invest in debt and money market instruments with a similar maturity profile.

BS

16)IDFC Mutual Fund will Wednesday launch IDFC Fixed Maturity Plan Yearly Series-27, which will close its initial subscription Oct 23, an official from the fund house said today. The close-ended income scheme will invest in debt and money market instruments with a similar maturity profile.

BS

17)Lotus India Mutual Fund today launched Lotus India Quarterly Interval Fund – Plan J, which will remain open for subscription till Wednesday. The open-ended quarterly plan will invest its assets in debt and money market instruments maturing in line with the duration of the plan.

BS

COMMODITIES

18)Losing nearly Rs 800 in three straight sessions gold prices on Tuesday closed at Rs 13,200 per 10 gm falling sharply by Rs 210 on the bullion market in New Delhi in line with weak global cues and shifting investor focus from funds to the surging bourses.

BS

19)GOLD is expected to lose some of its shine this Diwali. Yellow metal prices have surged almost 30% in the last one month, spoiling the festive spirit of buyers. This in turn is likely to affect sales for the jewellery makers who had witnessed upsurge of up to 200% in sales during August this year when prices had softened.

ET

20)Chilli futures continued to gain strength hitting the upper circuit for the second consecutive day. Strong demand in the Guntur spot market on Tuesday pushed up chilli futures by three per cent to Rs 5,673 a quintal. Maize hit the upper circuit of 2.98 per cent at Rs 846 a quintal on good buying interest at lower levels besides rise in spot prices amidst thin arrivals. Tumeric rose 1.98 per cent to Rs 3,562 a quintal on the back of short covering after recent down side movement. Soybean rose 1.06 per cent to Rs 1,667 a quintal on short covering.

BL

REAL ESTATE

21)While launching its Rs 700 crore real estate project named Rajgagh Estates in Ludhiana, Bhasin Infrastructures & Developers Private Ltd revealed its expansion plan and announced that the company would invest Rs 3,000 crore in the real estate projects in the state during next five years.

FE

22)OAKWOOD Asia Pacific, a unit of Los Angeles-based Oakwood Worldwide, plans to expand its portfolio of serviced residences in India and operate 10 properties by 2010 in Mumbai, Pune, Bangalore, Chennai, Hyderabad and New Delhi. “India and China are our focus markets due to their economic growth,” said Praveen Nair, country manager – India, Oakwood Asia Pacific.

ET

KNOWLEDGE PROCESS OUTSOURCING

23)SPECIALISATION can sometimes be a double-edged sword. India’s Knowledge processing outsourcing (KPO) sector, pegged at a size of $1.5 billion and predominantly servicing the financial services market, may see some serious rationalisation, re-definition of core business, diversification, slowdown in client additions and M&A play in the next six to 12 months, analysts reckon. Most KPOs have nearly 70% exposure to the US geography, which is reeling under history’s worst-ever economic crisis.

ET

INFORMATION TECHNOLOGY

24)Research firm Gartner Inc said global economic problems could impact next year’s IT budgets while lowering growth forecast by more than half from its earlier estimates. However, it said the budget cuts would not be as dramatic as one saw during the dotcom bust.

BL

INTERNATIONAL

25)US President George W Bush on Tuesday outlined steps to purchase equity stakes in US banks and temporarily expand government guarantees on new debt to review credit markets and restore confidence in the financial system. “This is an essential short-term measure to ensure the viability of the US banking system,” Bush said at the White House after meeting with his Working Group on Financial Markets, which includes treasury secretary Henry Paulson and Federal Reserve chairman Ben S Bernanke. The US will invest about $125 billion in nine of the nation’s biggest financial institutions, including Citigroup Inc and Goldman Sachs Group Inc, as part of a $250-billion effort to shore up the banking system. The othercompanies are Wells Fargo & Co, JP Morgan Chase & Co, Bank of America Corp, Merrill Lynch & Co, Morgan Stanley, State Street Corp and Bank of New York Mellon Corp, said people briefed on the plan.

FE

26)Crude futures traded lower on doubts that the US government’s plan to buy shares in large banks will prevent further declines in global oil demand. Light, sweet crude for November delivery traded 61 cents or 0.78 per cent, lower at $80.58 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

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