Date: 10 June 2009
Thought for the day
“Greatness can be nothing unless it’s lasting.”
1) Prime Minister Manmohan Singh said he was prepared to take another shot at peace with Pakistan – even travel more than half the distance as long as Islamabad demostrates its willingness to prevent its soil from being used to launch terrorist strikes against India or Indian interests.
2) Prime Minister Manmohan Singh express confidence that the economy would grow at 8 to 9 per cent over the next two or three years “even if the world economy does not do well”. He expected the economy to grow at least 7 per cent in the current fiscal.
3) THE government may now ask private sector and foreign banks to step up disbursals to industry after it directed state-run banks to do the same to help increase the flow of credit in the economy and boost liquidity in the market, a finance ministry official said.
4) THE government is considering extending the corporate tax holiday to export-oriented units and the Software Technology Parks of India scheme by three years in the forth-coming Budget. Though the tax sops are valid till the end of this fiscal(March 31, 2010), the government is expected to provide for the extension in this Budget itself as it would give stability to the recession-hit IT industry and the export sectors. The commerce & industry and IT ministries are pitching for extension of the sop for three years.
CORPORATE / INDUSTRY
5) Suryachakra Power Corporation on Tuesday said it has acquired Suryachakra Power Venture Pvt Ltd to make it a wholly-owned subsidiary. Suryachakra Power Venture Pvt Ltd, one of the company’s group companies, is in the process of setting up a 50 MW power project in Gujarat, Suryachakra Power Corporation said in a filing to the Bombay Stock Exchange.
MONEY & BANKING
6) The rupee gained slightly in a market that saw good selling and buying movement. The domestic currency traced the domestic equities market. It opened at 47.60/65 and closed at 47.48, against the previous close of 47.56.
7) FINANCE minister Pranab MUkherjee will meet heads of public sector banks on Wednesday and is expected to impress upon them the need to further moderate interest rates and increase credit flow to industry. The broad agenda of the meeting include review of interest rates, credit growth and agriculture loans, official sources said.
8)The Pension Fund Regulatory and Development Authority (PFRDA) is working on a slew of measures to make the New Pension Scheme(NPS) more attractive for investors. According to senior PFRDA officials, the regulator is putting in place an online application system and e-payment facility for the internet-savvy investors.
9) EQUITY benchmarks on Tuesday ended at their highest level in 10 months, shrugging off early sluggishness resulting from a weak trend in Asia. Despite the 3% rise in key indices, the broader market seemed to show signs of fatigue. On the BSE gainers narrowly out-numbered losers in the ratio of 14:13. Comments from the prime minister that India’s economic growth can rebound to 9% amid the global recession boosted sentiment, triggering further purchases from foreign institutions. FIIs net bought shares worth Rs 955 crore on Tuesday, even as domestic institutions continued to press sale, offloading Rs 143 worth of shares. BSE’s 30-share Sensex closed up 461.08 points or 3.14% higher at 15,127, its highest close since August 12,2008. NSE’s 50-share Nifty ended at 4550.95 up 121.05 points or 2.73%.
10) PSU stocks witnessed targeted buying as market expected fresh Government initiative for divestments. Of the 45 listed PSU stocks, those with negligible or very small public holding evoked increased interest from the market.
11) ACROSS the world, high net worth individuals(HNIs) – the euphemism used by the financial services industry for the rich – are putting their money into real estate and equity-linked products once again. These investors are getting into emerging markets such as Brazil, India and China, according to Barclays Wealth CEO Thomas Klaris. Within India too, HNIs have been investing into stock markets again since the past few weeks, said Kotak Mahindra Bank ED C Jayaram.
12) Shinsei Mutual Fund, the first Japanese-based sponsored mutual fund plans to launch three schemes in the next two months. The fund house got SEBI’s not to launch these products. “We plan to launch an equity fund, a bond fund and a liquid fund, perhaps even sooner,” said Mr N Sethuram, Chief Investment Officer of Shinsei Mutual Fund, said.
13) The Forward Markets Commission has permitted all the 3 major commodity exchanges to allow their traders to take fresh positions till the date of expiry in futures contracts of internationally referenceable commodities like zinc, copper, aluminum, nickel and crude oil.
14) Precious metals, gold and silver, recovered on the bullion market on Tuesday on fresh local buying interest coupled with higher global advices. Standard gold (99.5 purity) moved up Rs 25 for ten gm to Rs 14,630. Pure gold(99.9 purity) also looked up by Rs 30 for ten gm to Rs 14,700. Silver ready (.999 fineness) rose by Rs 60 a kg to Rs 23,285.
15)Realty companies are resorting to discounts to sell commercial properties in order to improve cash flows and reduce mounting debts. DLF, the country’s biggest real estate firm by market capitalisation, has recently sold its 66% stake in a special purpose vehicle that owns 8 acres of land at Prabhadevi in Mumbai for Rs 310 crore, which analysts fell was at a discount. It is also eyeing to raise around Rs 2,000 crore by selling another two commercial properties in the city. Unlisted firm K Raheja Universal recently sold a plot in Santa Cruz in north Mumbai for around Rs 60 crore.
16) FRANCE Telecom, Telstra and AT&T are in talks with Malaysia’s Maxis Communication to buy a minority stake in Aircel in yet another sign that the ongoing slowdown and credit crunch are having a negligible impact on deal activity in the telecom sector. The talks between the overseas players and Maxis revolve around France Tele buying a 20-25% stake in Aircel, a dominant player in Chennai and Tamil Nadu. Aircel, which is one of the major regional players in India,is in the midst of a $5-billion expansion plan that will see it becoming a pan-India player.
BUSINESS PROCESS OUTSOURCING
17) THE global economic downturn is likely to spur greater globalisation of the business process outsourcing industry and push BPOs to look for newer verticals for growth, a Nasscom summit pointed out on Tuesday. “It does not matter from where the service is being delivered, the real value is in globalisation of the industry,” said Nasscom chairman Pramod Bhasin.
18) WIPRO BPO, the $395 million arm of Wipro Technologies, is eyeing four-five large outsourcing contracts in the $60-$150 million range with Fortune 500 majors in the telecom, healthcare, banking & financial services and retail space.
19)SATYAM Computer Services, once ranked as India’s fourth largest software exporter, could have a fighting chance of reclaiming that position going by the revenue and profit figures disclosed for the first time since a scam overtook it this January. Investors cheered the stock as the firm reported revenue of over Rs 2,000 crore and a surprise profit of Rs 181 crore for the December 2008 quarter. Satyam’s revenue could thus touch around Rs 8,000 crore or $1.6 billion based on a simple extrapolation of these financial results, said IT analysts. Relieved investors responded enthusiastically with the Satyam stock hitting its 10% upper limit on the BSE to close at Rs 66.85. The disclosures seem to have lifted the uncertainty surrounding its true financials and reassured investors who were fearing the worst.
20)Satyam Computer Services, reeling under the impact of India’s largest corporate scandal, managed to bag new business orders worth $380 million(around Rs 1,800 crore), as on March 26,2009. These deals have come from 215 of its existing clients, the company said in a filing to the BSE. Meanwhile, the company lost 66 clients, worth $183 million (around Rs 900 crore) in the same period -either because contracts were terminated, or they expired, or were withdrawn.
21) Australian telco Telstra on Tuesday said it has renewed and awarded outsourcing contracts worth about $1.2 billion to IBM, Infosys and EDS as part of its vendor consolidation exercise to increase efficiency. As per Telstra’s major vendor agreement, EDS and Infosys would share $450 million application development and maintenance contract over five years.
22) IT firm Infotech Enterprises today said it has secured a multi-million dollar contract from Malaysia-based in CONTROL Tech (iTEC) for implementing an enterprise geographic information services(GIS) information system for Tenaga Nasional Berhad (TNB), the largest power utility in Malaysia.
23)US officials on Tuesday gave 10 of the nation’s biggest banks approval to pay back a combined $68 billion of taxpayer money pumped into them to combat the credit crisis. The Treasury Department did not name the banks but many of them are likely to announce they are making repayments and their names eventually will be published in routine Treasury reports. However, a source familiar with the matter identified the banks as Northern Trust Corp, BB&T Corp, Morgan Stanley, State Street Corp, JP Morgan Chase, US Bancorp, American Express, Capital One Financial Corp, Goldman Sachs Group Inc and Bank of New York Mellon Corp.
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Deccan Chronicle http://www.deccan.com
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