Date: 10 September 2009
Thought for the day
“You cannot expect to achieve new goals or move beyond your present circumstances unless you change.”
1)By-elections to 20 Assembly seats spread over seven states, including seven each in Bihar and Gujarat, will be held on Thursday in the second major test for political parties after the recent Lok Sabha polls.
2)Economists and policy-makers have been pleasantly surprised by the sharp industrial recovery in India, which will nullify the impact of lower farm output due to deficit rains and enable the economy to grow at 6 per cent or more in 2009-10.
CORPORATE / INDUSTRY
3)GMR Infrastructure, the flagship company of the GMR group with a turnover of Rs 4,500 crore, has decided to restructure its operations, creating four holding-cum-operational companies for airports, energy, roads and international business, which would be listed on the bourses in the next one to two years.
MONEY / BANKING
4)The rupee snapped a five-day winning streak on Wednesday, falling as demand for the US dollar from importers weighed and as a seesawing share market failed to provide clarity on the outlook for fund flows. The rupee closed at 48.51/52 per dollar, off an early high of 48.45, which was its strongest since August 24 and 0.1 per cent weaker than its previous close of 48.46/47.
5)Bank of Baroda and Canara Bank are expecting about 20 per cent growth in loans in the current financial year on the back of rising demand from segments such as retail, infrastructure, steel, and cement.
6)Key equity indices managed to end Wednesday with minimal gains as volatility was seen in the market throughout the trading session following weak cues from the Asian markets. The 30-share Sensex of the Bombay Stock Exchange added 59.88 points or 0.37% to close the day at 16,183.55 points. The broader S&P CNX Nifty of the National Stock Exchange(NSE) gained 9 points or 0.19% to end the day at 4,814.25 points. Dealers in the market say, markets opened the day in red, but intense buying in the Reliance Industries stocks, led the market recovery. Buying was also seen in the banking and oil & gas sectors while selling was witnessed in realty stocks.
7)Foreign institutional investors are shoring up investment in the country’s construction sector. With the BSE Sensex touching a 15-month high, the market capitalisation of FII investment in construction has gone up a whopping 422% in the past six months.
8)The National Stock Exchange’s(NSE’s) move to lower trading cost in futures and options(F&O) and cash segments by 10 per cent may force both the Bombay Stock Exchange(BSE) and the upcoming MCX Stock Exchange(MCX-SX) to have a re-look at their business models.
9)CAPITAL market regulator, the Securities and Exchange Board of India (Sebi), is considering limiting the period for which qualified institutional buyers(QIBs) can apply when an initial public offering(IPO) is open for subscription. The issue will be discussed at the Primary Market Advisory Committee(PMAC) meeting on Thursday, an official familiar with the matter told ET. At present, an IPO is open for subscription for a minimum of five days, and all categories of investors can put in bids till the last hour. The regulator is learnt to be amenable to reducing the timeline for bids by institutional investors to two or three days. This means the price discovery will happen in these two three days. People familiar with the development said going for ward, this timeline may even cut down to one day. Thereafter, the issue would remain open only for non-institutional bidders, i.e. high networth investors(HNIs) and retail investors.
10)The initial public offer of state-run Oil India on Wednesday got subscribed over four times the shares on offer, with most of the bids coming in from qualified institutional buyers(QIBs). The oil explorer’s IPO, which was launched three days ago, received bids for 10.62 crore shares against 2.64 crore on offer, as per the data available on the National Stock Exchange.
11)Coal India(CIL) will not be allowed to issue fresh equity as part of the disinvestment programme. It will only sell 10% of government’s equity in the proposed public offer, coal minister Sriprakash Jaiswal said. CIL initial public offer(IPO) is expected to hit the market in the next 18 months, he said at a conference.
12)SOUTH-Asia’s largest cancer care network, HealthCare Global Enterprises (HCG) is mulling an IPO in the next 18-24 months and has outlined a phased fund-infusion plan to multiply its healthcare footprint.
13)THE rally in mid and small-cap shares in the last couple of months has come as a blessing to managers of diversified equity schemes run by local mutual funds. The superior performance of these share categories compared to their frontline counterparts has helped diversified equity schemes narrow their underperformance vis-a-vis their benchmark indices – normally Sensex or Nifty – over the last two months. On an average, these equity schemes have returned 10.30% in the three-year period ending September 9, while the Sensex and Nifty have risen 10.55% and 11.40% respectively in the period, according to Value Research, a New Delhi-based mutual fund tracker.
14)Domestic gold exchange traded funds(ETF) recorded a new high on Tuesday tracking the sharp rally in international gold prices. Investors seem to be shifting their attention back to this asset class that has outperformed equity and debt funds over the last 12 months.
15)Tata Mutual Fund Plans to introduce a “Trigger Option” for declaring dividend in the dividend option of its Tata Equity P/E Fund, the fund house said on Wednesday. This facility would be introduced next month, said Mr Ved Prakash Chaturvedi, Managing Director of Tata AMC. Explaining the mechanism of the trigger facility, he said investors would have to choose trigger levels at 5 or 10 percent appreciation in the NAV while investing. When the NAV appreciates by 5 per cent or 10 per cent from the applicable base of NAV, dividend would be declared automatically, he added. The
record date for dividend would be announced within five working days from the date of the occurrence of the trigger. Once a dividend is declared, the next trigger shall be calculated from the ex-dividend NAV.
16)Gold held near $1,000 an ounce on Wednesday, supported by a weak dollar and concern about the sustainability of this year’s stunning rally in shares and some key commodities with prices seen ahead of fundamentals. Spot gold stood at $995.40 an ounce at 0937 GMT compared with $995.20 late in New York on Tuesday.
17)Copper slipped on Wednesday to track equities lower as traders fretted over whether the global downturn was actually over, but investor cash helped cap losses. By 0907 GMT, copper for three-month delivery on the London Metal Exchange fell to $6,427 a tonne from $6,480 at the close on Tuesday and compared with a session low at $6,410.
18)Black pepper, which touched nearly Rs 170 per kg about a fortnight ago, is now a shade cheaper with traders going slow in picking up the spice on seeing a lull in demand for spice from local markets and exporters.
19)The India foray of Israeli realty company, Plaza Centres, is finally taking shape with its first project taking off in India at Pune. Plaza will be investing Rs 3,000 crore in India for six projects. The project in Pune will be attracting an investment of Rs 500 crore. For this project, Plaza has signed up PVR Cinemas as their anchor tenant and multiplex partner. This also marks PVR’s foray into Pune.
20)BHARTI Airtel has denied reaching a preliminary agreement with South Africa’s MTN on their planned strategic alliance, saying the mobile phone firms are still in discussions ahead of the September 30 deadline for exclusive talks.
21)EMC, the world’s largest maker of data storage equipment, on Wednesday said it will invest $1.5 billion in India over the next five years to expand its research and development (R&D) activity and business operations.
22)WIPRO is scouting for acquisition of leading technology companies with new business models of the future and is evaluating a few candidates for large buyouts, a key company official said. “We continue to be active in acquisitions,” the Bangalore-based, company’s chief financial officer Suresh Senapaty said.
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Karvy Consultants Ltd www.karvy.com
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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