Date: 30 July 2009
Thought for the day
“Believe you can do it. Believing something can be done puts your mind to work for you and helps you find ways to do it.”
1)China has proposed that there should be a hotline between the Chinese Premier and the Prime Minister of India to maintain regular contacts at the highest level, External Affairs Minister S M Krishna told the Lok Sabha on Wednesday. In a written reply, the Union Minister said the two countries were in the process of discussing the technical and other modalities. A hotline between India and Russia is currently operational, Krishna said.
2)A day after the Reserve Bank of India pegged economic growth at 6% for 2009-10,finance minister Pranab Mukherjee on Wednesday told the Rajya Sabha that he expected growth to stay at the 6.7% level recorded in 2008-09. Pointing to the positive trends in manufacturing sector output as well as core sector production in June, Mukherjee expressed hope that the trend gathered momentum ‘when the busy season comes.’
3)INDIA received $2.2 billion foreign direct investments(FDI) in May this year, department of industrial policy & promotion(DIPP) secretary Ajay Shankar said. There is a 43% drop in the FDI inflow in May 2009 compared to $3.9 billion received in the same month of the previous year. The inflow of foreign capital into the country will improve now, as the country’s industrial output in June looks “promising,” Mr Shankar said on the sidelines of a seminar by Confederation of Indian Industry(CII). “We think, with liquidity improving and confidence in the economy rising, these (FDI) numbers should pick up,” he said.
CORPORATE / INDUSTRY
4)JSW Cement, part of the Rs 40,000-crore OP Jindal Group, plans to set up cement units near the group’s steel plants at Kurnool, Andhra Pradesh, and Vijayanagar, Karnataka. The units will have a combined capacity of 5.5 million tonnes per annum(mtpa).
MONEY & BANKING
5)The rupee opened lower as the dollar gained against most major currencies in the overseas market and weakend during the day tracking the negative equity indices and on month-end demand. The rupee opened at 48.32 and closed at 48.42, about 20 paise lower than the previous close of 48.20/21. During the day it touched a low of 48.51.
6)Punjab National Bank has reported a 62 per cent increase in net profit for the quarter ended June 30, at Rs 832.05 crore(Rs 512.40 crore). A sharp increase in treasury income coupled with robust credit growth helped the bank’s bottomline growth.
7)Aided by a robust treasury income, mainly trading profits from Government securities, Corporation Bank reported a 41.75 per cent increase in net profit in the first quarter of the current fiscal at Rs 261.25 crore(Rs 184.30 crore).
8)The Insurance Regulatory and Development Authority (Irda) is likely to relax the cap on the distribution cost of unit-linked insurance plans(Ulips). The cap is to be effective from October 1, 2009. The move follows a meeting of the Life Insurance Council today, where insurers suggested that mortality charges, which go into fixing the risk premium, be kept outside the ceiling imposed by Irda last week, Irda representatives were also present at the meeting.
9)The country’s largest insurer Life Insurance Corporation has increased its market share to 62% among life insurers in the first quarter of current fiscal, thereby growing by about 20 per cent, compared to same period last year.
10)Despite huge volatility throughout the trading session, equity indices closed the day below the dotted line, following weak cues from the Asian markets and intense selling in realty and metal stocks. The 30-share Sensex of Bombay Stock Exchange(BSE) lost 158.48 points or 1.03% to close the day at 15,173.46 points. The broader S&P CNX Nifty of National Stock Exchange(NSE) was down 50.60 points or 1.11% to end the day at 4,513.50 points.
11)Indian investors’ appetite for overseas equity and debt continued to rise during the last financial year. No wonder brokers and mutual funds are cashing in on the opportunity. Broking firms are forging ites with global players to facilitate direct equity market transactions. According to the Reserve Bank of India (RBI) data, investments in these two instruments have risen from $144.7 million in 2007-08 to $151.4 million in 2008-09.
12)THE Securities and Exchange Board of India is considering a further reduction in the rights issue timeline to 30 days or less from the existing 43 days. The move is in line with the regulator’s ongoing efforts to streamline primary market procedure. Three investment banking officials told ET that as part of this process, an offer document may no longer be required for a rights issue.
13)Fund houses have started inducing distributors by offering them sops to attract customers after the August 1 deadline, when the entry load for investing in mutual funds will be abolished. In the past few days, various senior officials from large fund houses have been meeting distributors and promising commissions of 2%-2.5% after August 1. A distributor, on condition of anonymity, said, “In the past few days, many fund houses have started assuring us commission of at least 2% after August 1. Mostly, all the major fund houses have promised us an upfront commission, while smaller ones are still trying to figure out the load structure.”
14)Hindustan Petroleum Corp Ltd (HPCL) has posted a net profit of Rs 649.12 crore for the quarter ended June 30,2009, as against a net loss of Rs 888.12 crore in the same quarter a year ago.
15)On the back of the highest ever quarterly two-wheeler sales in its history, Hero Honda Motors on Wednesday posted a 83% jump in its net profit during the April-June period at Rs 500.11 crore as against Rs 272.87 crore in the corresponding quarter of the last financial year. This is the highest-ever quarterly profit posted by it.
16)RAJESH Exports Limited’s first quarter net sales jumped 58% to Rs 3,672.1 compared to Rs 2,332.16 crore in the year-ago period. The first quarter net profit stood at Rs 18.45 crore as against Rs 34.43 crore compared to the same quarter last year. A company filing made with the stock exchangs said the order book stood at Rs 1,262.32 crore as on June 30,2009 compared to Rs 1,246 crore order book as on March 31,2009.
17)Commodities market regulator Forward Markets Commission asked exchanges to impose stringent penalty on cash transactions, which are banned. It is for the second time in as many months the regulator is asking the bourses to take stern action to curb rampant cash dealings. After a directive from FMC in June, commodity exchanges came up a penalty of 0.1% for every cash dealing of over Rs 10 lakh which, however, did not succeed much to prevent such a practice.
18)Gold fell in London and New York to more than a one-week low as a stronger dollar dimmed the metals appeal as a alternate investment. Gold futures for August delivery fell $5.20, or 0.6 per cent, to $933.90 an ounce as of 8:40 a.m. on the New York Mercantile Exchanges Comex division.
19)THE worst fears for consumers is coming true. With festivities kicking off as early as July 31 in the three southern states Karnataka, Andhra Pradesh and Tamil Nadu tur dal(or pigeonpea) has breached the psychological barrier of Rs 100 per kg in Karnataka.
20)THE deal between Bharti Airtel and MTN is likely to be inked only by September this year. It is learnt that the two companies could extend the exclusively period for discussion in a few weeks. The original timeline for discussions expires on July 31. In the event of the deal going through, the Bharti-MTN combined entity could be the third largest wireless group globally.
BUSINESS PROCESS OUTSOURCING
21)After a lull in hiring in the $12.7-billion Indian business process outsourcing(BPO) exports industry, players have again started putting up the ‘we are hiring’ sign. Even walk-in-interviews organised by hiring consultants are back in fashion. While most companies are looking at hiring in the finance and accounting, banking and insurance verticals,the industry is no more recruiting in droves bucking the trend for the last couple of years.
22)Information Technology(IT) industry body Nasscom has projected that the Indian IT industry will grow by 4 to 7 per cent in financial year 2009-10. The industry body has also estimated that the export revenues will be $48 billion to $50 billion in 2009-10 fiscal and domestic revenues will grow by 15 to 18 per cent to reach around $650-670 billion.
23)Crude oil fell the most in three months after a government report showed an unexpected gain in US inventories as imports jumped and refiners reduced operating rates. Crude oil for September delivery fell $3.23, or 4.8 per cent, to $64 a barrel at 10:48 a.m on the New York Mercantile Exchange.
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