Headlines (25 Sep 2009)

Date: 25 September 2009

Thought for the day

“A feeling of confidence and personal power comes from facing challenges and overcoming them.”

-—Brian Tracy


1)Satellite Oceansat-2, launched by PSLV-C14 on Wednesday, is doing “absolutely fine” and the onboard camera, called the ocean colour monitor (OCM), has taken pictures of the Arabian Sea, off the coast of Gujarat’s Kutch region, an Indian Space Research Organisation official said.



 2)Essential prices rose on a yearly basis, fuelling inflation to 0.37 per cent during the second week of September from 0.12 per cent a week ago, when it first made it into positive territory after a gap of 13 weeks.



3)Bharat Heavy Electricals Limited (BHEL) said that it has bagged an order from the Nuclear Power Corporation of India Limited (NPCIL) worth Rs 365 crore. The order is to supply four steam generators for the country’s second 700-MWe nuclear power station, being set up at Rajasthan Atomic Power Project, Kota.


4)Soon after bagging over Rs 5,000 crore worth of orders from the Oil and Natural Gas Corporation(ONGC) for the Mumbai High North (MHN) process platform and living quarter’s project, Larsen & Toubro (L&T) on Thursday said it has received a Rs 2,000-crore order from GMR Energy Limited, a GMR Group company, for setting up a 2×384 mw gas-based power plant at Vemagiri, near Rajamundry in Andhra Pradesh, on a lumpsum turnkey basis.


5)Wockhardt Ltd has bagged an award instituted by the government of India as the recognition for being the pharmaceutical company with the maximum number of patent filings and grants from India. Wockhardt has been granted 70 patents, 15 from the Indian Petent Office and 55 from the American and European patent offices. Wockhardt has a team of over 500 scientists working in its R&D centres.



 6)The rupee gained on Thursday tracking the recovery in the domestic equity market and on the back of good dollar inflows. The month- end dollar demand was absorbed by good inflows, said a forex dealer with a public sector bank. “The overall trend of the rupee is to gain against the dollar. Although there is month-end demand from oil companies, there are persistent dollar inflows,” he said. The rupee opened at 48.18 and closed at 47.96, slightly higher than the previous close of 48.



 7)Assets under management (AUM) of private insurance company ICICI Prudential Life have crossed $10 billion (Rs 47,000 crore), according to the company’s managing director V Vaidyanathan. Of the total assets, the private insurer has parked Rs 30,000 crore in the capital market and the remaining in debt instruments. The company’s assets under management stood at Rs 43,000 crore as on June 30, 2009.



 8)The Pension Fund Regulatory & Development Authority has shortlisted Crisil Fund Services as the institutional adviser in framing guide- lines for the pension sector. “Crisil Fund Services would advise us on the technical aspects and provide assistance in framing regulations and rules. We have sent them the letter,” an official with PFRDA said. Besides Crisil, KPMG and PricewaterhouseCoopers were among the other firms in the race to help PFRDA in coming out with the guidelines.



 9)Key equity indices bounced from the day’s lows to close with small gains on Thursday. Dealers attributed the volatility to the derivative contracts expiry, as old positions were squared up and fresh ones created. BSE’s 30-share Sensex closed at 16,781.43, a gain of 61 points over the previous close, after seeing a low of 16,494 earlier in the session. NSE’s 50-share Nifty rose 16.60 points to close at 4986.55. Market breadth continued to be in favour of the bulls, with gainers outnumbering losers 1466 to 1289. Foreign institutional investors continued with their aggressive purchases, net mopping up over Rs 1000 crore worth of shares.


10)BHARTI Airtel, which has underperformed the benchmark Sen- sex ever since it revived a plan to merge with South Africa’s MTN Group, may surge if the deal falls through, as it would put an end to uncertainty about the future of a combined entity with differing management styles, structures and some imponderables, investment advisors say.


11)DELIVERY-based volumes have seen a substantial improvement in the Bombay Stock Exchange(BSE) in the past few months, reflecting strong buying interest among institutional buyers. The daily average delivery-based volumes on BSE shot up to 42.4% of the total volumes in September, compared to 38.2% in August and 34.8 in July. The current month’s figure is the highest recorded since April last year.



 12)Reliance Infratel, a subsidiary of Reliance Communications, filed a Draft Red Herring Prospectus(DRHP) with market regulator Sebi on Thursday for its proposed initial public offering(IPO). The company received shareholders’ approval on Tuesday for an initial share sale of 10 per cent.


13)THE government is considering the proposed public offer of state owned SAIL, proceeds of which will be used to part fund the steel giant’s Rs 70,000 crore expansion project. “The matter of follow- on public offer(FPO) is under the consideration of the ministry of steel,” an official familiar with the matter said.


14)Thinksoft Global, whose Rs 47-crore initial public offering was scheduled to close on Thursday, has extended the IPO till October 1 and reduced offer price as the issue was not fully subscribed. The price band, which was at Rs 120-130, has been revised to Rs 115-125.



 15)In a bid to protect the interests of retail investors, the Securities and Exchange Board of India(Sebi) is planning a clear segregation of retail and institutional schemes. Sources said Sebi might ask fund houses to create separate portfolios and net asset values (NAVs) for retail and institutional schemes.


16)Reliance Mutual Fund on Thursday launched Reliance Fixed Horizon Fund-XIII-Series 4. The new fund offer of the 20-month plan would close on Tuesday, said an official from the fund house. The close- ended income scheme will invest its corpus in central and state government securities and other fixed income instruments maturing in line with the schemes.



 17)Gold ticked higher on Thursday, supported by recent dollar weakness and as risk-averse investors sold equities ahead of the Group of 20 summit meeting. Spot gold stood at $1,013.5 an ounce by 0920 GMT, from $1,007.05 quoted in New York on Wednesday.



18)The South-African delegation, comprising top officials from the national treasury and the South African Reserve Bank, met senior officials of Sebi and RBI on Thursday to discuss various possibilities regarding the issue of dual listing and mandatory open offer, which have emerged as a thorn in the proposed $23-billion Bharti- MTN deal. Though nothing was officially disclosed, sources said nothing concrete emerged from the meeting, which lasted for more than two hours.


19)Telecom player Spice Communications on Thursday said it has received the approval from shareholders, secured and unsecured creditors of the company for amalgamation with Idea Cellular. The meeting was held on the directions of the Delhi High Court on September 11 to discuss the scheme of amalgamation, the company said in a filing to the Bombay Stock Exchange.


20)After toppling rival Bharti Airtel by adding the highest number of sub- scribers in a month, Tata DoCoMo has said it will keep the momentum going as it takes its GSM service to new cities. The telco added over 3.4 million customers on both GSM and CDMA platforms during August, compared to 2.8 million by Bharti Airtel.



21)A year after the Department of Telecommunications (DoT) conditionally relaxed rules on IT-BPO employees working from home, Raman Roy, chairman & managing director of Quatrro BPO Solutions, has started pilot projects in Mumbai and Delhi to explore the possibility of scaling up the model. Quattro is the first BPO to have secured per- mission for this model from DoT.



 22)TECH Mahindra, IBM and TCS are in the race for a $400-million (Rs 1,800 crore) IT outsourcing contract from Sistema Shyam Tele- services(SSTL), a person familiar with the matter said. Negotiations are on with these companies for a 10-year deal, but the contract will contain a clause that will allow Sistema Shyam to exit after five years, he said, requesting anonymity.


 23)INDIA’S top tech firms, along with multinational rivals, are preparing to bid for a key enterprise resource planning(ERP) project of the United Nations, named ‘Umoja’. Enterprise software maker SAP has already been awarded the contract for the ERP software, and the UN will start inviting bids for system integration and services, estimated to be worth up to $300 million early next year.


24)US-based conglomerate General Electric (GE) has extended its multi-million dollar contract with Mahindra Satyam for three years starting January 1, 2010, giving a boost to the IT firm which has started winning new outsourcing deals. Mahindra Satyam, which also counts Citigroup, GlaxoSmithKline, Cisco Systems and Nissam among its clients, is one of the top three vendors for GE. Its contract with GE has been for over a decade now in specialised areas of development, maintenance, business intelligence and engineering services.



25)Oil prices dropped more than $2 towards $66 a barrel and were on track to fall nearly 7 per cent this week as a surprise jump in US crude and product stocks stirred doubts that prices may have run ahead of demand fundamentals.



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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