Date: 08 September 2009
Thought for the day
“If you believe it will work out you’ll see opportunities. If you believe it won’t, you’ll see obstacles.”
–Dr Wayne Dyer
1)The Centre is believed to have decided to abolish import duty on rice till September 2010 to augment supply in the domestic market, after drought in half of the country stoked fears of a fall in production.
2)India and Indonesia are expected to form a joint working group for cooperation in the coal sector, the Coal Minister Mr Sriprakash Jaiswal, said in New Delhi. The move is aimed at streamlining and enhancing India’s coal import from the south-east Asian nation.
3)A Large proportion of salaried employees would have additional money to spend, up to nearly Rs 9,000 a year, if a proposal to hike the tax- exempt monthly transport allowance, from Rs 800 to Rs 3,200, goes through. The proposal is being studied by the finance ministry.
CORPORATE / INDUSTRY
4)MAHINDRA and Mahindra will end this fiscal year as the world’s number one tractor company by volumes, a company official said. “If we take the volumes of one legal company – not all subsidiaries or international operations – we might well be number one this year,” said Anjanikumar Choudhari, president of the farm equipment division at the automobiles-to-finance-to-IT conglomerate.
5)Drug firm Aurobindo Pharma said it has received US regulatory approval for its Risperidone Oral Solution used in the treatment of mental and emotional problems. The company has received Abbreviated New Drug Application(ANDA) approval from the US Food and Drug Administration.
MONEY / BANKING
6)The rupee appreciated against the dollar tracking the gains made by the domestic equity markets. But consistent dollar demand from oil companies put a cap on the gains, said forex dealers. The rupee opened higher at 48.75 and closed at 48.64, about 24 paise higher from the previous close of 48.89.
7)Credit demand from consumers seemed to be back on track, especially in sectors such as auto and home loans though banks had cut down unsecured loan exposures, said K V Kamath, chairman of ICICI Bank.
8)The bulls had one more reason to celebrate as the Bombay Stock Exchange Sensitive Index, or Sensex, today went past the 16,000- mark after a gap of 15 months. The reasons for the rise were many: A firm trend in the global markets after China allowed more foreign portfolio investments on Friday and the US reported fewer job losses for August; Finance Minister Pranab Mukherjee reiteration of a statement by G-20 signaling they would not end stimulus measures; and the government’s statement that monsoon rains may improve. All Asian markets ended in the positive territory today. The Sensen rose 327.20 or 2.1 per cent, to 16,016.32, the highest since June 2,2008. The Sensex exhibited firm movement throughout the day after opening 104.15 points higher. Short-covering towards the end also helped the rise. The S&P CNX Nifty Index on the National Stock Exchange added 2.2 per cent to 4,782.90.
9)IT heavyweights Infosys Technologies has emerged as the biggest contributors to Sensex’s 1,000-point rally to 16,000 between August 19 and September 7. Aided by strong dollar against the rupee, the stock gained 14% to add 185 points to the index during the period.
10)Shares of Uttam Galva Steels Ltd opened on Monday at an all-time high of Rs 125.05 on the BSE after the world’s largest steel producer, Arcelor Mittal, said its Dutch unit had made an offer for 29.39% in the Indian company. Uttam Galva shares closed at Rs 125.05, up 9.98%. Arcelor Mittal’s offer will open on October 31 and close on November 19.
11)FUND managers once again seem to be queuing up to buy shares of Jaiprakash Associates, now that it will become part of NSE’s Nifty in-dex with effect from next month. The stock is already part of the BSE Sensex.
12)In a move that would benefit retail investors, the National Stock Exchange today said the transaction charges would be lower by about 10 per cent in cash and derivatives segment but would levy system abuse charges in the Futures & Options category from October 1.
13)The initial public offer(IPO) of Oil India Ltd(OIL), the second largest state-run oil and gas company, was subscribed 1.27 times on the first day of its opening for subscription today.
14)ORIENT Craft(OCL), one of the largest apparel exporters from India, which supplies to international clothing retailers such as Gap, Tommy Hilfiger and Marks & Spencer, may come up with an initial public offer(IPO) to raise funds next year, a top company executive said.
15)McNally Bharat Engineering Company Ltd(MBECL) has decided on fresh issue of shares on rights basis in the ratio of one new share for every 10 held at Rs 140 a share of Rs 10 each.
16)Gold held broadly steady on Monday just shy of $995 an ounce, consolidating stellar gains last week that took it tantalisingly close to the $1,000 psychological level, with buyers encouraged by dollar weakness. Spot gold stood at $994.70 an ounce by 1348 GMT, broadly steady from $993.40 quoted late in New York last Friday.
17)GOLD has remained a laggard over the past few months although stocks have remained bullish since March and closing above 16,000 on Monday. Indian spot gold prices, for instance, have moved in a narrow Rs 20 range(Rs 1,560 to 1,580 for 10 gm) between March and September even though stock markets globally have rallied on the back of ample liquidity.
18)Copper rose on Monday as firmer equities continued to boost the demand outlook, but last week’s mixed US payrolls data was seen as signalling a slow recovery and kept a cap on gains. Lead held near its highest level in 16-months, still underpinned by worries over smelter shut-downs in China linked to pollution concerns, although there are indications the outages will be short-lived.
19)S RAMADORAI, chief executive of India’s biggest software ex- porter TCS, who retires in October believes the worst could be behind for the country’s over $40 billion software industry. “The drastic downturn is behind us and we are seeing stability. Demand is coming our way with deal pipeline beginning to show… though there may be occasional shocks,” he told reporters in an interaction in Bangalore. For the first quarter FY 10 TCS re- ported revenues of Rs 7,207 crore registering a year-on-year (YoY) growth of 12.42%.
20)IT company Tech Mahindra has bagged a Rs 2,000 crore deal for end-to-end outsourcing of IT applications and infrastructure from Etisalat DB Telecom, a joint venture between the UAE-based Etlisalat and the Dynamix Balwas group. The JV, earlier known as Swan Tele- com, is rolling out cellular services across 15 circles in India.
21)THE global economy is stabilising and the outlook is better than previously expected, leading central bankers said after a meeting on Monday. “It’s already known a number of projections have been slightly revised up, confirming that we probably are…out of the period of freefall which had marked the last quarter of last year and the first quarter of this year,” said JeanClaude Trichet, speaking on behalf of the G 10 top central bankers.
22)American International Group Inc, the insurer bailed out by the US government, agreed to sell its external fund management business to Hong Kong billionaire Richard Li’s Pacific Century Group for about $500 million.
23)Kraft Foods Inc, the second-largest food company, said it will pursue a takeover of Cadbury Plc after the British maker of Trident gum and Dairy Milk chocolate rejected a 10.2-billion pounds($16.7 billion) bid.
24)China’s top 500 companies outperformed their US counterparts for the first time last year,a survey conducted by a business group has revealed, as the financial crisis wreaked havoc in the United States. Net profits at the nation’s highest-performing firms total- led $171 billion in 2008, compared to $99 billion for the US firms, according to the survey by the China Enterprise Confederation (CEC).
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