Headlines (23 Sep 2009)

Date: 23 September 2009

Thought for the day

“No man ever became great or good except through many and great mistakes.”

–William E. Gladstone


1)Prime Minister Manmohan Singh leaves on Wednesday on a four day visit when he will attend the G-20 summit in the US, which will discuss the need to strengthen rules governing financial markets and steps to quicken the global economic recovery from its worst crisis.

Indian Express


2)THE Asian Development Bank (ADB) has raised its growth forecast for India to 6% in the current fiscal year from its earlier projection of 5%, thanks to increased public spending and improved business confidence, but cautioned against the ballooning fiscal deficit.


3)In a clear affirmation that India Inc is on the mend, advance tax payments by companies have finally clawed out of the red to register a 14.7% growth, amounting to Rs 44,010 crore, in the second quarter of 2009-10. This is a turnaround from the first instalment paid by June, when the tax payment shrunk by 3.7% to Rs 20,728.60 crore.



4)The Hinduja group looks to establish a pan-India footprint in healthcare, and its first steps are to set up a second hospital in Mumbai, besides scaling-up its first, and existing, hospital also in the financial capital.


5)Zandu Pharmaceutical said on Tuesday it had received shareholders’ approval for its merger with Emami and Emami Infrastructure. In a filing to the Bombay Stock Exchange, Zandu Pharmaceutical said that at the court convened meeting of the company’s equity share- holders on September 11, around 99.87 per cent of shareholders voted in favour of the merger.



6)HOME loan borrowers can now look forward to more transparent pricing from banks as the Banking Codes and Standards Board of India (BCSBI) has directed its member banks to come clear on their lending policies and its other services upfront. Henceforth those who avail floating rate home loans, will have to be informed of the reference rate to which the floating rate is anchored. The bank will also have to disclose on its website changes in such reference rate as and when they take place on a real time basis.


7)AXIS Bank has become the new price warrior in the car loan segment. The third largest private sector bank has slashed interest rates by around 150-200 basis points in the past one month in some of select Southern markets. Axis has in the three southern cities of Hyderabad, Chennai and Bangalore started offering interest rates of 9% across all car models. The bank has also waived processing fees and the rates are valid till the end of the month.


8)Private sector lender Lakshmi Vilas Bank is planning to raise Rs 240 to 300 crore through the issue of shares on rights basis. The board of directors has approved the move, Lakshmi Vilas Bank said in a statement to the BSE today.



9)Aegon Religare Life Insurance Ltd is planning to launch health insurance product by the end of the current fiscal. The company is also looking at introducing annuity product by early next fiscal.



10)The Pension Fund Regulatory and Development Authority(PFRDA) will consider a proposal to manage the pension funds of companies at its board meeting today, extending its role from being manager of individual pension plans.



11)The country’s equity indices continued their winning rally and ended the day with gains following strong cues from the global markets coupled with hope of a strong quarterly earning season for the second quarter. The 30-share Sensex of the BSE added 145.13 points or 0.87% to end at 16,886.43 points. The broader S&P CNX Nifty of the NSE gained 44.15 points or 0.89% to close at 5,020.20 points. Barring the oil & gas, all the sectors in the BSE sectoral indices ended the day on positive terrain.


12)BENCHMARK Indian indices have outperformed their Asian peers like Shanghai Composite SE(China), KOSPI(South Korea), Strait Times(Singapore) etc. Even when compared with Dow and Nikkei, Sensex has fared better. The gap in valuations has narrowed down with its emerging market peers while widened for developed market counterparts. The trend reflects growing investor confidence, and analysts feel, if sensex continues to outperform Asian peers, it may soon become the biggest index in the continent.


13)Capital market regulator Securities and Exchange Board of India (Sebi) on Tuesday amended the takeover regulations and offered the facility of anchor investors to Indian Depository Receipts issues. This will raise the attractiveness of the issues meant to attract foreign companies to invest in Indian equities market. An anchor investor gives smaller investors confidence that the shares will be actively traded in the market. The board of the regulator also decided that at least 30% of issue size of such issues will be re- served for allocation to retail individual investors, who may other- wise be crowded out.



14)For the primary markets, the fireworks are expected to begin after Diwali with merchant bankers expecting initial public offerings (IPOs) to raise at least Rs 40,000 crore in the second half of the fiscal.



15)Mutual funds that invest in commodity and energy stocks have trounced the Sensex returns as well as the 70 per cent category average returns of diversified equity funds on a year-to-date basis ending September 18, thanks to the twin benefits of the rally witnessed in the equity markets as well as the commodity rally.



16)The National Commodity and Derivatives Exchange Ltd (NCDEX) has extended trading hours from September 22 to October 9 on account of disruption of satellite services due to sun outage, the exchange said. The exchange would be suspending trading in all commodities between 11.25 am and 12.05 pm. The day’s session for agri commodities, except robusta coffee futures, will not be extended, it said in a circular. However, the evening trading session for bullion, metals, crude oil, furnace oil, robusta cherry AB coffee and polymers will end at the usual time of 11.30 pm.


17)Commodity market regulator Forward Markets Commission(FMC) on Tuesday said it is unlikely to ban futures trading in jute as there is no inflationary pressure on prices.


18)Copper rose on Tuesday as dollar weakness boosted industrial metal prices, although concerns about rising London Metal Exchange inventories limited gains. By 0906 GMT, copper for three month delivery on the London Metal Exchange climbed to $6,265 a tonne from $6,190 at the close on Monday.


19)Snapping a four-day fall, gold prices spurted by Rs 115 to Rs 16,060 per ten grams in the national capital today on buying at attractive low levels amid firm global cues. Buying by stockists and jewellery fabricators increased on fears that the metal might become costly due to the approaching festival of Diwali.



20)Property firms are launching new housing projects and raising pitch for their ongoing projects hoping to make decent sales going into the festive season. The mood among builders may be buoyant but few believe price hike is possible as demand is still hesitant and new supplies are hitting the market. The festive season, which usually begins late September with Hindu festival of Navratri and continues up to Christmas holidays, often sees higher sales of property, cars and other durables in India.


21)DLF, the country’s largest property firm, on Tuesday said it sold the entire block of 1,250 apartments in the second phase of its Capital Greens project in Delhi in just two hours of the launch on huge demand.


22)IN yet another big-ticket realty deal in Chennai, India Cements has acquired a commercial space owned by ICICI Bank in the upmarket Santhome High Road, reflecting an uptick in the property market. While both sides are tight-lipped on the deal, sources close to the transaction told ET that the deal value was around Rs 63 crore.



23)Reliance Communications, the country’s second largest mobile telephone company, will seek regulatory approval to sell 10% stake in its telecom infrastructure unit Reliance Infratel through an initial public offering (IPO), chairman Anil Ambani said. Addressing the shareholders at RCOM’s annual general meeting on Tuesday in Mumbai, Mr Ambani said. The IPO proceeds would be utilised to fund expansion of the nationwide network of 48,000 towers at Reliance Infratel as demand for leasing networks increases.


24)MAX India founder & Chairman Analjit Singh and former Vodafone Essar MD Asim Ghosh are selling 49% of their total holdings in Vodafone Essar to parent firm Vodafone Group for Rs 863 crore. Mr Singh and Mr Ghosh jointly own 12.26% in Vodafone Essar, the second-largest GSM-based telecom company in India in terms of both subscribers and revenues. Mr Singh will get Rs 533.3 crore for selling a 3.71% stake while Mr Ghosh pockets Rs 329.5 crore for parting with 2.29% stake.


25)BHARTI Airtel will face a new hurdle at the Securities & Exchange Board of India in its efforts to create the world’s third largest mobile phone company with South Africa’s MTN Group, as a new rule will make the deal more expensive for MTN.



26)PATNI Computer Systems, which battles with bigger Indian tech peers for large outsourcing contracts, has identified two acquisitions targests – one each in the US and continental Europe – and plans to close at least one transaction by November this year. People familiar with Patni’s acquisition plans said the company wants to cross the $1 billion mark in revenues through inorganic growth and compete more effectively with TCS, Infosys and Wipro for large multi-year outsourcing contracts.



27)Crude oil rose for the first time in four days before a report forecast to show US crude supplies contracting, while a weaker dollar boosted the investment appeal of commodities. Crude oil for October delivery rose as much as $1.18, or 1.7 per cent, to $70.89 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $70.68 at 1:08 pm London time.



Karvy Consultants Ltd www.karvy.com

www.karvycomtrade.com (Commodities)
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

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