Headlines (17 Aug 2009)


Date: 17 August 2009

Thought for the day

“Opportunities are like sunrises – if you wait too long, you miss them.”

–William Arthur Ward

GENERAL

1)INDIA has completed the design of Chandrayaan-2, its next mission to the moon. This time it is in collaboration with Russia and will have a lander and rover that can collect samples of the lunar soil and analyse them and send the data back.

Indian Express

ECONOMY

2)DESPITE a 25% shortfall of the south-west monsoon, the government hopes that water from important reservoirs in the western and southern parts of India could be used to improve production and productivity of summer(kharif) crop such as pulses, oilseeds and to a certain extent paddy.

ET

3)With European and Asian countries like France, Germany and Hong Kong pulling themselves out of the downward spiral, Indian exporters can expect a reasonable growth by December, says a Ficci survey. In a survey conducted by Federation of Indian Chamber of Commerce and Industry, majority of respondents said exports are expected to be in positive terrain by December this year.

FE

CORPORATE / INDUSTRY

4)The auto component industry, which has just started seeing revival after a lull in the business, relies on the retail market of auto spare parts for better growth. “The impact of slowdown is much less in spare parts business. The size of the Indian auto spare parts market is estimated to be around Rs 36,000 crore and is growing,” said Mr R Bhurat, Chief Executive, Mahindra Spares Business.

BL

MONEY & BANKING

5)The rupee is expected to touch 44 to a US dollar by March 2010, a rise of over 8% from the current 48, says a research report from Axis Bank. The report makes the conclusion based on the consistent upswing in foreign investment inflow into the stock markets and “a high likelihood of surplus in current account, against a $30 billion deficit in 2008-09”.

FE

6)Indians poured Rs 7,28,078 crore into the banking system by way of deposits in the year ended July 31, 2009, 27 per cent more than in the preceding year. State Bank of India alone raked in 28 percent of this money, with the public sector banks garnering the bulk of new inflows.

BL

7)The country’s third largest public sector lender, Bank of Baroda, on Sunday said that its life insurance venture with the UK-based Legal and General Group is expected to commence operations in the next seven months.

FE

MARKETS

8)Indian equity indices which witnessed a huge upward rally last week following strong global cues, is likely to take cues from the international markets in the coming days. However with US markets closing in red last week might have some impact on the domestic markets when it opens on Monday. In the last one week, 30-share Sensex of BSE added 1.66% or 251.39 points, while the broader S&P CNX Nifty of National Stock Exchange(NSE) gained by 2.20% or 98.65 points. On Friday, last trading day of previous week, Sensex closed at 15,411.63 points down by 106.86 points or 0.69%. The Nifty ended at 4,580.05 points losing 24.95 points or 0.54%. Dealers in the markets say that, domestic markets are likely to remain in the upbeat mood as sentiment across the globe remains positive after the US Federal Reserve said the world’s largest economy US may be emerging from a recession.

FE

9)FIIs have made a net investment of just Rs 264 crore in the domestic stock markets in August. Analysis of FII activities in the Indian stock markets shows that overseas investors are, so far in August, a net purchaser of domestic stocks worth Rs 264.6 crore. FIIs made a gross purchase of shares worth Rs 22,821.2 crore, while they sold equities valued at Rs 22,556.6 crore, resulting in a net investment of just Rs 264.6 crore, according to the data available with market regulator Securities and Exchange Board of India(Sebi). However, it seems that during the period under review, the Indian debt market became a preferred choice for overseas investors as the segment attracted a net investment of nearly Rs 2,200 crore.

ET

10)In a step towards disinvestment, Coal India has got approval from the Coal Ministry to reduce the face value of its shares to Rs 10 from Rs 1,000, a move that would increase the number of the company’s shares to 631.6 crore.

BL

11)THE country’s biggest rating agency and Standard & Poor’s arm Crisil is stepping into uncharted territory to grade listed stocks an experiment that will be the first of its kind in the world and is sure to have its own share of controversies. Retail investors, many of whom are returning to the market after last year’ turmoil, can check the grading of a stock to find out how fundamentally sound the company is.

ET

IPO

12)THE government has fixed a price of Rs 36 a share for the allotment of shares in the initial public offer of NHPC, thus raising Rs 6,048 crore, of which one-third would go to the Centre as disinvestment proceeds and the rest would remain with the hydro power utility PSU. According to power ministry sources, the Group of Ministers has decided to allot shares at the upper limit of the price band of Rs 30-36 a share.

ET

MUTUAL FUNDS

13)THANKS to improved market sentiment and funding-raising activities of realty firms, the country’s mutual funds have turned bullish on the real estate sector, with their investment in property stocks soaring to Rs 1,421 crore till July. The value of realty stocks held by fund houses stood at just Rs 171 crore in December, when the economy was experiencing the tremors of the global financial turmoil. Going by the data with mutual fund tracking firm value research, the money parked by these entities in realty scrips is Rs 1,421 crore till July, more than an eight-fold jump as compared to the investment in December last year.

ET

14)HSBC Asset Management Company is planning schemes that will invest in overseas markets. “Despite the recession, some markets out- side India(such as China) are doing well. We see specific opportunities there which might benefit the investors”, Mr Vikramaditya, Chief Executive Officer of HSBC AMC India, told Business Line.

BL

COMMODITIES

15)Gold prices are likely to surge further this week to rule over Rs 15,000 per 10 gm level amidst a weakening dollar and rising demand ahead of the festival season. On Friday, October gold on Multi Commodity Exchange ruled at Rs 14,965 per 10 gm, touching a high of Rs 15,011 per grms. While in the international market the yellow metal ruled at 958 dollars an ounce (28.34 grams). Analysts say gold is attracting investors as they are expecting the prices to rise further.

FE

REAL ESTATE

16)With end-users and investors returning to the real estate market and demand for apartments in the metros picking up bit by bit, experts believe the price of premium residential apartments will rise by 15% to 25% during Diwali this year. They say premium apartments in Mumbai, including South Mumbai, Bandra and Worli, and those in Delhi, including Connaught Place and East of Kailash, which were available at Rs 70,000 to Rs 80,000 per sq ft during January to March this year(Q4 of 2008-09) will be sold at Rs 1 lakh to Rs 1.20 lakh sq ft during Diwali.

FE

17)Builders are not the only ones climbing onto the ‘affordable housing’ bandwagon. With premium housing and commercial realty market still in near comatose, the affordable housing projects are now catching the eye of dedicated real estate funds and private equity(PE) firms which are chasing opportunities in this emerging space.

BL

COMMUNICATIONS

18)DATACOM Solutions has signed an infrastructure sharing deal with Tata Teleservices(TTSL) that will allow it to lease bandwidth as well as towers across the country from the Tata group firm, executives familiar with the development said.

ET

BUSINESS PROCESS OUTSOURCING

19)The Indian business process outsourcing(BPO) industry is following in the footsteps of information technology service firms, in- creasing its global footprint as it eyes bigger and more complex work from clients. The demand for global solutions is pushing Indian BPOs to grow aggressively into global centres, said a senior executive. For instance, in the past 18 months, WNS has expanded its presence in the Philippines, Romania, and now Latin America.

BS

INFORMATION TECHNOLOGY

20)THE prolonged slump in global technology services spending is clearly turning out to be more like a boring five-day test match cricket than a T20 encounter. While the greenshots hold out hope for changes in the macro environment, it’s yet to translate into big deals the Indian IT players had just about started getting used to. That was a good 12-18 months back. Since those good old days of 24% growth a year, technology services export growth has dived to 4-7%. Despite the setback, the smarter companies haven’t buried their heads in the sand, like the proverbial Ostrich. They are working overtime, identifying new niches, new markets, creating new systems to get the bucks in this tough environment and prepare for better times.

ET

INTERNATIONAL

21)A SUCCESSFUL Doha round trade deal could boost the global economy by $300-700 billion a year, a study by the Peterson Institute for International Economics said. The figures that the Washinton-based institute calculates are similar in size to stimulus packages deployed by the biggest countries to tackle the economic crisis, and underline how much is at stake in the long-running talks.

ET

22)VOLKSWAGEN’S triumphant bid to take over luxury German carmaker Porsche marks the end of a bitter family power struggle and the start of a drive to become the world’s top auto manufacturer. “VW and Porsche are entering a new era – the company has the means to become number one,” pipping Japan’s Toyota by 2018, chief executive Martin Winterkorn said Friday at company head- quarters in Wolfsburg, northern Germany.

ET

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd http://www.karvy.com
http://www.khojhyderabad.com
http://www.indiacorporateadvisor.com
http://www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd http://www.KARVYGlobal.com
KARVY Realty (India) Limited http://www.karvyrealty.com
Economic Times http://www.economictimes.com
The Financial Express http://www.financialexpress.com
Business Line http://www.businessline.in
Business Standard http://www.business-standard.com
The Times of India http://www.timesofindia.com
The Hindu http://www.hindu.com
Deccan Chronicle http://www.deccan.com
The New Indian Express http://www.newindpress.com

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