Date: 02 July 2009
Thought for the day
“Continuous learning is the minimum requirement for success in any field.”
1)Following a rise in the international price of crude oil and the increasing under-recovery of State-run Oil Marketing Companies (OMCs), the United Progressive Alliance government on Wednesday increased the price of petrol by Rs.4 a litre and diesel by Rs.2 a litre.
2)A strong revival in monsoon rains has put to rest fears of a fall in economic growth in the current fiscal. With monsoon rains, the life-line of Indian economy, making rapid strides throughout the country to make up for the delay, the Indian Meteorological Department’s (IMD) projection of a below-normal monsoon could well turn out to be an overestimation, said analysts. Suresh Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said there was no risk to an above-7% growth projection for the economy now. According to recent data, 11 out of 16 times when June rains were deficient, the overall monsoon rainfall was normal.
3)The Lok Sabha will apply guillotine on discussions on demands for grants by the third week so as to complete the entire budgetary process in Parliament by July 27. The Budget session begins on Thursday with the tabling of the Economic Survey by FM Pranab Mukherjee. The Railway Budget would be presented on Friday, while the General Budget will be unveiled on July 6.
CORPORATE / INDUSTRY
4)RELIANCE Infra, an arm of the group controlled by billionaire industrialist Anil Ambani, is eyeing a stake in the prestigious Hyderabad Metro Rail Project. The cash-strapped Maytas Infra,
the lead partner in the consortium executing the Rs 12,000 crore metro rail project, is looking at selling a part of its stake due to its inability to fund the project.
5)Larsen & Toubro has bagged two hydrocarbon projects cumulatively worth Rs 651 crore. The company will build a greenfield refinery project at Bathinda for HPCL-Mittal Energy Ltd (HMEL) valued at Rs 440 crore. The other order is from Engineers India Ltd for the supply and construction of a reactor and regenerator system valued at Rs 211 crore for the fluidised catalytic cracking(FCC) unit of Mangalore Refinery and Petrochemicals.
6)Nagarjuna Construction Company Ltd(NCC) has secured four new orders aggregating Rs 797 crore. The orders include an Rs 418-crore order from Andhra Pradesh Government for construction of gravity canal, Rs 168 crore electrical works from Maharastra Government, and Rs 132 crore for flyovers in Bangalore from the Karnataka Government.
MONEY & BANKING
7)The rupee was flat on Wednesday in a range-bound market. The domestic currency opened at 48.05 and strengthened to touch an intra-day high of 47.88. It closed at 47.90/92, same as the previous close.
8)Indian Bank has informed the stock exchanges that it has reduced its Benchmark Prime Lending Rate(BPLR) by 50 basis points to 12 per cent from 12.50 per cent with effect from Wednesday.
9)SBI Life has taken over ICICI Prudential to become the largest private insurer by garnering first year premium of Rs 784 crore in the first two months of the current fiscal. ICICI Prudential
during the first two months earned a premium of Rs 483.54 crore from new business while SBI Life promoted by the country’s largest lender State Bank of India, at the same time collected Rs 784 crore, according to the IRDA data.
10THE insurance regulator Irda has prohibited Indian insurers from investing in Indian Depository Receipts, saying the insurance law does not allow investment of policy-holders funds directly or indirectly outside the country.
11)ICICI Prudential Life Insurance Co, a joint venture between ICICI Bank and Prudential Plc,launched “LifeStage Assure Pension” plan on Wednesday. The new plan assures guaranteed additions up to 200 per cent of the first year premium, liquidity in the form of partial withdrawals, regular income post-retirement and bonus units from sixth year onwards. One can invest a minimum of Rs 15,000 per annum for a policy term of 15 to 62 years under the plan.
12)SBI Life Insurance has launched a unit-linked plan called ‘Maha Anand’. The product, designed to cater the middle and low-income segments, is available at a low premium entry level of Rs 500 per month. Customers buying this product are also exempt from medical examination, a press release by the company said.
13)Short covering after the recent correction, coupled with buying in heavyweights, helped shares close higher on Wednesday. The Sensex rose 1.1 per cent, or 151.63 points, to close at 14,645.47 after trading between a low of 14,355.52 and a high of 14,727.49 in the session. “The upswing resulted from a combination of short covering and buying in Reliance Industries and banking stocks,” said Mr Amitabh Chakraborty, President of equity at Religare Securities. “We are likely to see a good market in the coming two days,” Mr Chakraborty said, adding that market will build up to Monday’s budget. The Sensex may rise above the 15,000 mark, he said. On the NSE, the 50-stock S&P CNX Nifty index rose 1.2 per cent, or 49.80 points, to 4,340.90.
14)Chennai-based Kabirdass Motor Company, which sells Xite electric scooters, is planning to raise Rs 60 crore through an IPO. The issue will be open in 45 to 60 days, said Mr Murali Kabirdass, Managing Director.
15)Telecommunications Consultants India Ltd has started work on floating an initial public offering, the Director Finance, Mr K B Batra, said. “Though the formal in-principle nod is yet
to come, we have been informally told by the Ministry to start work on the IPO.
16)The Securities and Exchange Board of India’s (Sebi’s) ban on entry load is likely to reduce the number of fresh new fund offers(NFOs), which would have otherwise hit the market. It might also prompt fund houses to rush into launching the already-cleared NFOs before the August 1 deadline, when the ban comes into effect.
17)The country’s top fund house, Reliance MF, said it has collected Rs 2,350 crore through its recently-concluded infrastructure scheme. “The collections are approximately more than 100% of the combined industry NFO collections in the last 12 months and a few times the number of investors for all NFOs combined,” the company said.
18)Shinsei AMC(India) plans to launch its third product, an equity fund, by the third week of this month, a top official said. It launched its first two products–Shinsei Liquid Fund and Shinsei PSU Bond Fund-Ultra Short-Term Plan, on Tuesday.
19)MULTI Commodity Exchange of India Ltd(MCX) on Wednesday launched its futures trading in gasoline contracts. MCX is the first exchange in the country to launch the full basket of energy products including crude oil, heating oil and natural gas.
20)With a view to strengthen its presence in metals as well as bullion segment, National Multi Commodity Exchange of India(NMCE), one of the leading comexes in the country, plans to launch seven new future contracts in 2009. The exchange is in the process of starting futures contracts, which include nickel and aluminium in metals segment and silver in bullion category.
21)RELIANCE Communications (RCom) is looking at outsourcing the management of its broadband and fixed line services in a bid to cut costs. The contract, which could be upwards of $1 billion, is likely to be awarded in the next 3-4 months.
KNOWLEDGE PROCESS OUTSOURCING
22)THE global recession is expected to see only serious players in the KPO fray, a comedown of sorts from the dizzying valuations and high growth of the past. Adding to the trouble is that very few firms are entering the segment right now since business prospects are pressumed to be not very encouraging.
23)Crude oil surrendered some gains on Wednesday after the US Government reported growing domestic stores of key refined products gasoline and distillates. Light, sweet crude for August delivery was recently up 48 cents, or 0.7 per cent, at $70.37 a barrel on the New York Mercantile Exchange.
24)MAJOR automakers are expected to report the highest sales rate of 2009 when they post results for June, as deep discounts limit industry-wide results to a 30% decline. In the context of the US auto industry, where sales have been slumping for four years, that would constitute good news and support the view sales are near bottom after a punishing decline to nearly 30-year lows, analysts and executives said. All of the largest automakers are expected to post deep US light vehicle sales declines for June to round out what has been the weakest market since the
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