Date: 11 August 2009
Thought for the day
“It isn’t what you have, or who you are, or where you are, or what you are doing that makes you happy or unhappy. It is what you think about.
1)With the monsoon showing no sign of any major recovery, the Indian Meteorological Department late on Monday decided to reduce its estimate of rainfall during the season to 87 per cent for the country as a whole and for the season in its entirety. This marks a reduction of six per cent in the last long range forecast issued in June-end, when the agency had predicted a rainfall of 93 per cent.
2)ROBUST demand from automobile and consumer durable sectors led to increased production and consumption of steel during April- July period this fiscal. The four-month period saw finished steel production grow 4% and consumption increases 5.8%, thereby showing clear signs of economic recovery, as per the provisional data of ministry of steel.
CORPORATE / INDUSTRY
3)Passenger cars reported the highest-ever growth in the recent past, with domestic sales up 31 per cent in July on the back of new launches and cheaper loans. According to data released by the Society of Indian Automobile Manufacturers (SIAM), 115,067 passenger cars were sold in July, up from 87,901 units retailed in the same month last year.
4)Drugmakers Cipla, Ranbaxy, Hetero and Natco are expected to be in the fray to bag the government’s contract to buy 20 million low cost anti-flu medicine Tamiflu. These companies will also benefit from retail sales of the drug as the government will allow companies to sell these medicines directly to the consumer in the next two weeks, to control the spread of swine flu.
5)Tata Steel, which recently announced a five-year, Rs 40,000-crore capex programme, plans to raise up to Rs 5,000 crore through issue of securities and is seeking shareholder approval for the fund raising. The world’s sixth biggest steel firm last month raised $500 million (about Rs 2,390 crore) via a GDR issue.
6)Glenmark Pharmaceutical’s attempts to become the first Indian company to develop a new drug may succeed by next year, as its candidate for the anti-diarrhoea associated with HIV, named Crofelemer, has moved into the final stage of clinical trials.
MONEY & BANKING
7)The rupee rose for the first time in three days as signs that the global economy is recovering from a recession spurred speculation foreign funds will increase their holdings of emerging-market assets. The currency advanced 0.1 per cent to 47.815 a dollar at close in Mumbai, according to data compiled by Bloomberg.
8)Bolstered by a four-fold jump in treasury gains, the top-12 banks in the country clocked a 55.2 per cent jump in net profits in the quarter ended June 30, but high cost of funds hit their net interest margins, rating agency CARE said in a report today.
9)MetLife India Insurance on Monday announced its entry into health insurance with the launch of an innovative scheme ‘Met Health Care’, offering daily cash benefits in the case of hospitalisation and the option of undergoing no medical test before availing of the cover. The product offers its customers a daily cash benefit in the case of hospitalisation and a lump sum benefit in the case of critical illness or accidental and permanent disability, MetLife said in a statement. At the same time, customers are not required to undergo any medical tests to avail of this plan, it said.
10)Investors sold equities to take profits amid growing concerns of a weak monsoon that could result in crop failure, stoking fears of further slowdown in growth and spike in inflation. The 30-share Sensex of Bombay Stock Exchange(BSE) dropped 150.47 points, or 0.99%, to end the trading session at 15,009.77 points while the broader 50-share Nifty of National Stock Exchange(NSE) closed at 4,437.65 points, losing 0.98%, or 43.75 points.
11)Taking a cue from improvement in global sentiments and positive commentary by company management, Indian IT stocks are once again back in favour. The BSE IT index jumped 25.9 per cent since July 10. It gained 2.6 per cent over Friday’s close.
12)Mundra Port and Special Economic Zone’s (MPSEZ’s) shares rose 3.36 per cent to Rs 559.15 on reports that the company has bagged a project to develop a handling terminal at the port of Mormugao, Goa, on a design, build, finance, operate and transfer basis.
13)The MVL scrip hit the 5 per cent upper circuit to close the day at Rs 154.7 on the company’s stock-split plan. The company’s board will meet on August 17 to consider a stock split (the current face value of the share is Rs 10).
14)VOLATILE market conditions and the lack of a clear trend is forcing many retail investors to exit the equity derivatives segment. This is borne out by the National Stock Exchange’s data, which reveals the share of retail investors in the equity derivatives segment as having fallen to its lowest level in five years.
15)Oil India Ltd(OIL), the second state-run firm to hit the market with an offering of equity shares this year, may price its initial public offering(IPO) that opens on September 7 at Rs 1,000- 1,100 a share.
16)As many as 26 applications for setting up mutual funds are pending with the Securities and Exchange Board of India(Sebi) at various stages of approval. There are already 36 fund houses actively soliciting investments for over 2,000 schemes.
17)WITH returns from liquid funds declining steadily, banks and other institutional investors are shifting investments to liquid plus funds (now called ultra short-term funds) which offer higher yields. Mutual fund analysts reckon about two-third of liquidity surpluses of institutions are now in ultra short-term funds.
18)Copper prices came within touching distance of 10-month highs on Monday as investor money, betting on global economic growth and demand, flooded the industrial metals market. Three-month copper on the London Metal Exchange, traded at $6,225 a tonne, not far from last week’s $6,235, which was the highest since early October last year.
19)Gold fell more than 1 per cent to a one-week low of $942.00 an ounce on Monday as liquidation of long positions on New York’s COMEX futures market triggered a wave of automatic sell orders, taking spot prices below $950.
20)The newly launched guar seed contract on the Multi Commodity Exchange(MCX) is attracting huge volumes these days as the specter of drought of large parts of northern India threatens to clip the crop’s output. The daily trading volume of MCX guar seed contract crossed Rs 100 crore as many as three times last week because of heightened trader participation.
21)Unitech Group has launched two residential projects in Chennai including Uni Homes in the affordable segment in a southern suburb, and a Rs 4,500-crore township in North Chennai. Uni Homes is a brand positioned in the fast-growing affordable homes category. These would be gated communities with 500-1,000 sq ft, apartments priced in the Rs 10-30 lakh range depending on the location and the city.
22)Bharti Airtel, the country’s largest telecom operator, won the top telecom services provider of the year 2009 in the Voice & Data 100 Survey 2009. Manoj Kohli, CEO and joint MD of Bharti Airtel, was named the Voice & Data Telecom Person of the year 2009. In total Airtel bagged five awards including the top VSAT player 2009, the top NLD player 2009 and top cellular services provider 2009.
23)Global markets may be the breadwinners for Indian technology majors,but the domestic market is fast becoming the next hot desti- nation for global firms, particularly smaller, niche market players. While the Western economies are still waiting for ‘green shoots’ of recovery, a slew of niche technology vendors, who were focusing on the US and Europe for so long, are finding greener pastures in emerging markets such as India.
24)TAKING precautionary steps against swine flu, Infosys Technologies has restricted both inbound and outbound travel from its development centre in Pune. On the other hand, Wipro is continuing with its general travel advisories.
25)Oil prices dipped below $71 a barrel on Monday, losing momentum after last week’s rally as traders focused on swollen inventories and prospects for a stronger dollar. US crude fell 34 cents to $70.59 a barrel by 6.02 am EDT.
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Karvy Consultants Ltd www.karvy.com
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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