Date: 12 June 2009
Thought for the day
“To the timid and hesitating everything is impossible because it seems so.”
1)In a first-of-its kind pre-budget exercise, the UPA government on Thursday sought to involve the States in devising ways to put the economy back on track for higher growth without increasing the fiscal deficit.
2)Inflation slipped to 0.13% for the week ended May 30, the lowest ever in over three decades, a development that could hasten the process of rate cuts by the banks. While the wholesale price index stood at 0.48% in the previous week, the rate of price rise was 9.32% during the corresponding week a year ago.
CORPORATE / INDUSTRY
3)TATA Tea, the world’s second-largest tea company after FMCG giant Unilever with FY09 revenues of Rs 4,874 crore, on Thursday said it wants to acquire global brands in Russia, South America, Asia Pacific and Africa. These proposed acquisitions are part of Tata Tea’s new thrust on attaining global leadership in beverages.
4)SESA Goa, the country’s largest private ironore exporter, has bought Goa-based V S Dempo Mining Corporation for Rs 1,750 crore in order to further consolidate its position in the industry. The acquisition of the unlisted company, which owns 19 mining leases spread over 1,800 hectares in Goa, will add 70 million tonne of reserves to Sea Goa’s 240 million tonne. Last year, VS Dempo posted a net profit of Rs 400 crore on a topline of Rs 1,500 crore.
5)LARSEN & Toubro Ltd(L&T) on Thursday sold its residual 11.49% stake in UltraTech Cement Ltd to domestic and foreign institutional investors through an open market transaction for an estimated Rs 1,036 crore.
MONEY & BANKING
6)The rupee fell by about 10 paise against the dollar tracking the overseas currency markets and the domestic equity market. The dollar appreciated against most overseas currencies such as euro, said a forex dealer with a private bank. The weak trend in the domestic equity market and oil prices touching $71 for a barrel also put pressure on the rupee, he said. The rupee opened higher at 47.35/37 and closed at 47.58/60, lower from the earlier close of 47.48.
7)INDIA’S financial regulators are set to launch exchange-traded interest rate futures again in the local market as part of a co-ordinated effort to broaden reforms in the financial sector. The move is aimed at helping firms better manage the risks arising from interest rate fluctations. To start with, a futures contract based on a notional coupon or interest bearing ten-year government bond will be introduced. Foreign institutional investors may well be kept out of this segment of the market until volumes pick up and the market deepens, according to an official associated with the launch of the product.
8)The Insurance Regulatory and Development Authority(Irda) is now insisting that insurers need to have their policy documents in vernacular languages in a bid to step up increase penetration level of the insurance products.
9)Bharti AXA General Insurance has launched a health product, ‘Critical Illness Insurance’ policy. The policy would cover twenty critical illnesses and offer a five per cent discount on policy renewal premium for every claim-free year, a press release issued by the company said.
10)Indian equity markets snapped two day winning streak and closed the day in red, after witnessing huge volatility throughout the trading session. Dealers in the market said after two day strong upward rally, huge profit booking was witnessed in the markets. The 30-share Sensex of Bombay Stock Exchange lost 55.34 points or 0.36% to close the day at 15,411.47 points. The broader S&P CNX Nifty of the National Stock Exchange(NSE) was down by 17.55 points or 0.38% to end the day at 4,637.70 points. Despite market closing below the dotted line, both foreign institutional investors(FII) and domestic institutional investors(DII) remained net buyers. As per provisional figures provided by BSE, FII were net buyers at Rs 786.57 crore and DII were also net buyers at Rs 558.14 crore.
11)The Satyam Computer Services stock hit the upper circuit filter for the third consecutive day on the Bombay Stock Exchange, touching Rs 80.85 from the previous close of Rs 73.50. The continuous spike in the share price of the Hyderabad-based IT firm has made many market experts suggest that new owner Tech Mahindra may have to take the preferential issue route to gain a 51 per cent controlling stake in the company.
12)Bata India on Thursday gained 3.5 per cent after shooting up around 6 per cent on Wednesday on value buying. The BSE volume in the counter was more than 8.41 lakh, about seven times its fortnightly average. In the last one week, the stock has improved about 9.4 per cent and its monthly gain is over 43.7 per cent. According to analysts, the company has been able to buck the downtrend in the organised retail space, witnessed in the past one year.
13)Shareholders of a de-listed company will be allowed at least one year after the date of delisting to tender their shares to the promoters of the company, according to the delisting regulations that were notified this week.
14)THE National Stock Exchange(NSE) has received in-principle approval from the Bombay Stock Exchange(BSE) to develop a solution that would allow brokers of both the stock exchanges to trade on multiple exchanges. This would enable stimultaneous trading in NSE and BSE-listed companies, said persons familiar with the development.
15)With returns from liquid funds diminishing, arbitrage funds are witnessing increasing interest from high networth individuals (HNIs) as well as retail investors to park their money. Since arbitrage funds have a tax advantage over liquid funds, returns from the former have become more attractive for investors. Arbitrage funds are taxed like equity funds at 15 per cent for short-term capital gains. However, 28 per cent is deducted from liquid funds as dividend distribution tax(DDT), which makes returns from these funds go down further.
16)Gold inched higher in Europe on Thursday as the weaker dollar lent support, but gains were limited as the currency awaited fresh direction from another US government debt auction later in the session. Spot gold was bid at $954.60 an ounce at 0929 GMT, against $953.65 an ounce late in New York on Wednesday.
17)Copper rose to an eight-month high on Thursday as data showing a fresh high in copper imports to China boosted sentiment, while aluminium was buoyed by another drawdown in stocks. Copper for three-months delivery on the London Metal Exchange traded at $5,290 a tonne in official rings from a close of $5,180 on Wednesday.
18)Jeera futures rose by 1.22% in afternoon trade on Thursday, extending gains for the third straight day, on the National Commodity and Derivatives Exchange as traders enlarged positions after spice exports were at record high. Pick up in demand in the physical markets also influenced the prices.
19)The pepper futures market on Thursday witnessed high volatility on conflicting overseas reports on Vietnamese prices and eventually closed below Wednesday’s price after being bullish for the past two days. June contract dropped by Rs 136 on NCDEX and closed at Rs 12,801 a quintal. July and August fell by Rs 120 and Rs 106 respectively to Rs 12,975 and Rs 13,135 a quintal.
20)The 12th India Realty Expo 2009 held in Dubai saw 106 flats worth Rs 65.33 crore being booked, a senior real estate industry official said. “106 flats worth Rs 65.33 crore were booked(during the expo),” the Maharashtra Chamber of Housing Industry(MCHI) Chief Executive Officer, Mr Zubin Mehta, said in a press release.
21)HOME sales have picked up in select Indian markets over the last couple of months, but analysts warn that the prices may not have bottomed out yet as developers are sitting on a huge inventory. Markets such as Delhi national capital region(NCR) – that includes Delhi and surrounding areas such as Gurgaon, Faridabad, Noida and Ghaziabad – have seen a rebound in home demand with several builders launching projects at a discount to market rates. They call it disruptive pricing. And it has worked. In one day DLF, India’s largest real estate company, sold almost double the number of flats in Delhi than all the builders together in Mumbai in the March quarter. They sold 1,356 apartments in Delhi on April 7, when it launched a residential project in West Delhi by offering flats at up to 32% less than market rates.
22)REAL estate-focused private equity firm Red Fort Capital is picking up 18% stake in Parsvnath Developers’ much-delayed premium residential project in Civil Lines, Delhi, for Rs 90 crore, a release issued by the property developer said on Thursday.
23)GSM-based mobile operators in the country added 8.3 million subscribers in May, taking the total subscriber base to 306.4 million. As per the data released by the Cellular Operators’ Association of India(COAI), the total number of GSM(Global System for Mobile communications) subscriptions in India reached 306.4 million in May compared with 298.1 millin in April. Bharti Airtel maintained its pole position in the GSM-space with a market share of 32.48 per cent. Airtel hit the landmark of reaching the 100-million subscriber mark with the addition of 2.8 million subscribers in May.
BUSINESS PROCESS OUTSOURCING
24)TATA Consultancy Services(TCS), the country’s largest software services firm by revenues, is competing for 5-6 business process outsourcing(BPO) deals worth up to $150-200 million, a senior executive said. The outsourcing deals are largely in verticals such as banking and financial services, retail and energy & utilities.
25)Crude oil rose for a third day, climbing above $72 a barrel for the first time in seven months, after China’s net imports jumped to a 14-month high and US crude and gasoline stockpiles unexpected fell.
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The Times of India http://www.timesofindia.com
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Deccan Chronicle http://www.deccan.com
The New Indian Express http://www.newindpress.com