Date: 06 August 2009
Thought for the day
“Everything has beauty, but not everyone sees it.”
1)Chinese Vice-Minister for Foreign Affairs Dai Bingguo will arrive in New Delhi on Thursday to hold in-camera talks on the border issue with National Security Advisor M.K. Narayanan on Friday and Saturday. Mr. Narayanan and Mr. Dai will resume the 13th round of talks after a hiatus of almost a year. The last round of India-China border issue talks was held in September 2008.
CORPORATE / INDUSTRY
2)Bharat Heavy Electricals Limited (Bhel) on Wednesday said that it had secured an order for the main plant package for an upcoming thermal power project in Orissa, involving two new-rating units
of 600 mw each. An independent power producer – Jindal India Thermal Power Limited(JITPL) placed Rs 2,600-crore on public sector electric equipment behemoth for the greenfield power project, located at Derang in Angul district of Orissa.
3)Aditya Birla Nuvo Ltd(ABNL), a part of $28 billion conglomerate Aditya Birla Group and the only group company that posted net losses for the past seven consecutive quarters, seems to have taken the maximum impact of the global slowdown. The company now expects its growth businesses, telecom and financial services, to outperform the industry in the coming quarters.
4)Engineering major Larsen and Toubro(L&T) said on Wednesday it has bagged two projects worth Rs 853 crore from two different firms for construction-related projects.
MONEY & BANKING
5)The rupee strengthened against the dollar on Wednesday, tracking the positive domestic equity market and gains made by other major currencies against the greenback. The rupee opened at 47.65 and closed at 47.52, higher by 23 paise from the previous close of 47.75.
6)Corporation Bank will raise Rs 650 crore through issue of bonds. The bank informed the Bombay Stock Exchange on Tuesday that it proposes to issue Tier-I bond (Rs 100 crore) and Upper Tier-II bonds(Rs 250 crore and Rs 300 crore) on private placement basis at different coupon rates.
7)Sustained buying in frontline stocks on the back of impressive first-quarter earnings of companies helped the domestic equity bourses gain on Wednesday, ignoring weak Asian cues. The 30-share Sensex of the Bombay Stock Exchange(BSE) ended at 15,903.83 points, rising 72.85 points, or 0.46%. The benchmark index was just 27 points away from the psychological 16K level at 15,973.10 points at one time, but pared gains soon after due to profit-taking in banking, metal and automobile stocks. The broader 50-share Nifty of National Stock Exchange(NSE) closed at 4,694.15 points, gaining 0.29%, or 13.65 points, on Wednesday.
8)Shares of Glenmark Pharmaceuticals were among the big gainers in Wednesday’s volatile session, gaining over 8% to close at Rs 269.55. Over 17 lakh shares were traded on the BSE; twice the two-week daily average volume. Market talk is that the company may shortly announce an outlicensing deal for one of its molecules.
9)Global Depository Receipts(GDR)/American Depository Receipts (ADR) prices of Indian companies increased significantly during the first eight month of 2009. This is reflected in Instanex Skindia DR Index. The index increased by 72% to 2,255.61 on August 4, 2009 from the level of 1,311.31 on January 1, 2009.
10)The revival of the initial public offer (IPO) market has prompted brokerages to restart margin funding, a process by which they finance high net worth clients to subscribe to new issues. The trend, which began during the Mahindra Holidays and Adani Power offers over the past two months, is now gaining momentum.
11)Private property developers such as Godrej Properties and Lodha Developers may tap capital markets in the next three-four months to raise funds for their ventures, according to investment banking sources.
12)Commodity bourses MCX, NCDEX and NMCE can now hold equity stake in one another as the government has allowed cross-holding in national level commodity exchanges that have completed five years.
13)BASE metals pack – copper, aluminium, nickel, zinc and lead have rallied between 10%-20% over the past five trading sessions in the commodity exchanges following economic signs of revival and a weak dollar. Analysts expect the rally to continue and advise investors to accumulate on any correction.
14)The National Commodity & Derivatives Exchange(NCDEX), the country’s second largest commodity futures trading platform, has raised special margin on all outstanding positions from 10 percent to 20 per cent. The levy would be effective from August 6. Special margins are levied in case of high volatility in prices with the purpose to minimise traders’ risk.
15)The Forward Markets Commission, has revised daily price limit of crude palm oil effective from August 21,2009. With this revision now initial daily price limit has been revised at 3 percent from 2 percent earlier. If the price breaches this limit in any direction, there will be a cooling off period of 15 minutes.
BUSINESS PROCESS OUTSOURCING
16)BPO firm WNS Global Services reaffirmed its guidance for FY10 as its first quarter revenues grew on the back of its acquisition of Aviva Global Services and operating profit margins improved on cost efficiences. The second largest India-based pure-play BPO firm, which is listed on the NYSE, saw its first quarter revenues grow 11% to $136.7 million (about Rs 656 crore at current exchange rates), but net profit slipped on amortisation charges and higher foreign exchange losses to $1 million (Rs 4.8 crore). The net profit in the corresponding quarter last year was $3.3 million (Rs 15.8 crore). On Wednesday, a downward revision in guidance by BPO leader Genpact had sparked concerns about a similar revision by other players in the industry. But reaffirming its FY10 guidance, WNS said revenue was expected to be between $385-$390 million(Rs 1,848-1,872 crore) and adjusted income between $50 million-$52 million(Rs 240-250 crore).
17)VERTEX Customer Services, the Gurgaon-based Indian arm of the UK-headquartered business process outsourcing company, that grew to about 3,000 staff back in 2003 and then almost imploded with key client exits and got reduced to a 400 people operation, is now getting back in business. A new CEO and a new strategy hopes to see the BPO company back on track.
18)INFOSYS Technologies is looking to acquire IT companies operating in the energy and healthcare segments in geographies as diverse as Latin America, Europe, Japan, Middle East and Australia. The software bellwether is setting its sights on overseas firms with annualrevenues of roughly $450-500 million. The acquisitions will help India’s second largest software exporter to diversify client base, especially when growth has been flat from traditional revenue streams like banking, financial services and insurance (BFSI) sector besides retail and manufacturing verticals.
19)Crude oil futures extended declines after a US government report showed a bigger-than-forecast increase in inventories. Supplies rose 1.67 million barrels to 349.5 million in the week ended July 31, the Energy Department said on Wednesday in a weekly report. Stock piles were forecast to increase by 600,000 barrels, according to the median of analyst estimates in a Bloomberg News survey. Crude oil for September delivery fell $1.49, or 2.1 per cent, to $69.93 a barrel at 10:36 a.m. on the New York Mercantile Exchange.
20)Britain is contemplating the idea of outsourcing the process of self-assessment tax returns and other sensitive information to India and effect a saving of 200 million pounds, a magazine claimed
21)UK services expanded the most in 1-1/2 years, manufacturing unexpectedly rose and home prices jumped as evidence mounts that the worst recession in a generation is easing. An index of services
rose to 53.2 in July from 51.6 in June, Markit said on Wednesday in London.
FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd www.karvy.com
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