Headlines (30 Sep 2009)

Date: 30 September 2009

Thought for the day

“You can do anything in life you set your mind to, provided it is powered by your heart.”

—Doug Firebaugh


1)International Atomic Energy Agency (IAEA) Director-General Mohammad ElBaradei on Tuesday acknowledged India as a “leading advocate” for nuclear disarmament and felt the world must listen to its “voice” for the elimination of nuclear weapons. In the civil nuclear arena, he described India as a “role model” for developing countries and wanted them to gain from its technological expertise.



 2)The trickle has turned into a deluge. India’s Inc’s order book has more than doubled to an all-time high of Rs 73,320 crore in the second quarter of the current financial year compared to the first quarter. On a year-on-year basis, the increase is 21 per cent. An analysis of order book announcements by 63 companies shows that capital goods, engineering and infrastructure have led the way, cornering 86 per cent (Rs 63,439 crore) of the total orders. The remaining Rs 9,881 crore went to gems & Jewellery, pharmaceuticals and telecom. Larsen & Toubro (L&T) topped the list with new orders worth Rs 14,253 crore.


3)Tamil Nadu-based India Cements Ltd(ICL) has firmed up plans to produce power to meet its current and future requirements. As part of its strategy to become an integrated cement company, it is looking to acquire a coal mine in Indonesia and an overseas gypsum producer to meet its fuel, as well as raw material requirement.



 4)The rupee fell by around 14 paise against the dollar on Tuesday, in a range-bound market. It opened at 48.05 and touched an intraday high of 47.98. It weakened to close at its day’s low of 48.11, against the previous close of 47.97.


5)Mid-size state-run banks should “seriously” look at consolidation and mergers in the next 5-10 years, the Union Finance Secretary, Mr Ashok Chawla, has said. This was necessary to come out with a banking structure that was not only efficient and optimally regulated as in the past, but with bank balance-sheets and asset sizes that correspond to the needs of the growing economy, Mr Chawla said after launching Vijaya Bank’s mobile banking service in the Capital on Tuesday.


6)IDBI has reduced interest rate on home loan and auto loans. The bank will charge 8.75% for Rs 30 lakh home loan against 9% charged earlier, 9%(9.5%) for Rs 50 lakh and 9.25%(9.50%) for above Rs 50 lakh loan. The above rates are on floating rates basis linked to bank’s prime lending rate which is 12.75%.



 7)Gains in technology stocks and buying by funds in index heavyweight Reliance Industries helped shares end higher on Tuesday. Sensex climbed 159.91 points, or about 1 per cent to settle at 16,852.91. It traded between 16,802.80 and 16,907.84 during the session. “Foreign institutional investors are consistently buying. Fund flow is so aggressive that it’s hard to play against the momentum,” Mr Suhas Samant, a fund manager at brokerage Sharekhan, said. On the NSE, the 50-stock S&P CNX Nifty rose 47.90 points, or about 1 per cent, to 5,006.85.


8)Sebi chairman CB Bhave on Tuesday said the markets regulator will focus on listed companies which are not ready to provide information to independent research units. Sebi will also go beyond the statutory disclosure norms and look at independent research agencies for more details. Speaking at the launch of independent equity research(IER) by Crisil, Bhave said disclosing such information will ensure transparency and help investors to understand their investment decisions better.



 9)Draft public offer documents for any issue size of Rs 50 crore or less are to be filed with the regional SEBI offices assigned to States and Union Territories, the markets regulator said in a circular on Tuesday.


10)THE cash-starved realty sector is sprinting to the market regulator Sebi to raise around Rs 14,000 crore or $3 billion in initial public offers(IPOs). At least seven realty companies, including Lodha Developers, Sahara Prime city, Emaar MGF and BPTP, have either filed the draft red herring prospectus (DRHP) with Sebi since Friday or plan to do it on Wednesday.


11)PIZZA chain Domino’s Pizza India, 67% of which is owned by the Delhi-based Jubilant Group could go for its maiden public issue to pave an exit route for its private equity(PE) partner JP Morgan who wants to sell its 33% stake, three people familiar with the matter said asking not be named. While the details of the proposed initial public offer (IPO) is not known, a listing would make Domino’s Pizza India the first eatery chain in the country to be traded publicly.



12)Religare Mutual Fund has launched a PSU fund which will invest in state-owned firms, especially those that are likely to benefit from the divestment process and reforms. The ‘Religare PSU Equity Fund’ opened on Tuesday and will close on October 28. The fund will invest 65 per cent of its assets in companies in the BSE PSU index and the remaining 35 per cent in other PSUs.



13)Gold firmed on Tuesday as the market attempted to consolidate recent bouts of speculative selling, but gains were limited as the dollar maintained its edge over the euro, leaving the metal exposed to further falls. Spot gold stood at $991.50 a troy ounce by 1007 GMT, compared with $989.95 quoted late in New York on Monday.


14)Gold prices declined further on the bullion market on Tuesday on lack of local buying interest at higher levels. Silver also moved down in the absence of demand from industrial users. Standard gold (99.5 purity) declined by Rs 30 for ten gm to close at Rs 15,525 from the previous closing level of Rs 15,555. Pure gold (99.9 purity) also fell by Rs 35 for ten gm to Rs 15,600 against Rs 15,635. Silver ready(.999 fineness) too looked down by Rs 35 a kg to end at Rs 26,205 from its previous close of Rs 26,240.



15)FOR nearly three decades, politicians from Norway to New Delhi were flying to Colombo to facilitate peace in Sri Lanka. Now corporate executives from Larsen & Toubro’s AM Naik to Omaxe’s Rohtas Goel may join author-investorJim Rogers in flying to the once wartorn Indian Ocean island to share a pie of the future prosperity. L&T, Omaxe, Puravankara Projects are among those lining up to build projects anticipating an economic surge in Sri Lanka expected to happen after a bloody war. They are planning to build shopping complexes, residential homes and much more.


16)Realty firm Omaxe on Tuesday said it would develop four new housing projects at an investment of Rs 1,500 crore over the next three years. It is mulling increasing prices of existing projects within three months.



 17)THE Bharti-MTN talks entered the last round as the final decision from the South African government is expected today, the last day of the exclusivity period between the two companies. A source close to finance ministry said that the Indian government is waiting for its South African counterpart to revert with a new deal structure that will comply with Indian laws.



 18)The global information technology and business process outsourcing market will end 2009 with total revenues of $373 billion, 14.4 per cent higher than the $326 billion recorded in 2008. India and China will remain at the top of the list, with expected revenues amounting to $48 billion and $28 billion, respectively. India would have 44.8 per cent of the total outsourcing pie and China 25.9 per cent, ac- cording to Canadian-based ICT research and advisory firm XMG Global.



19)Tata Consultancy Services(TCS) will provide end-to-end system integration services to Carnation Auto, a Jagdish Khattar initiative. The multi-year agreement envisages TCS as the full service provider responsible for enterprise IT solution implementation and includes business consulting, technology implementation & support.


20)Larsen & Toubro (L&T) Infotech on Tuesday said it has bagged a multi-year, multi-million dollar contract from a large German semi- conductor manufacturer, Infineon Technogies AG(IFX). L&T Infotech is the unlisted technology arm of Rs 40,480-crore engineering and construction conglomerate, L&T.


21)MINDTREE, the IT and product engineering services firm has acquired the Indian subsidiary of Kyocera, with an upfront payment of $6 million. This acquisition will give MindTree around 600 people in Bangalore and will strengthen its engineering services business.



 22)The UK economy shrank less than previously estimated in the second quarter and mortgage approvals stayed near the highest in more than a year last month, a sign Britain is emerging from recession. Gross domestic product fell 0.6% from the first quarter, compared with a prior measurement of a 0.7% drop, the Office for National Statistics said on Tuesday in London.


23)BNP Paribas SA, France’s largest bank, said it will raise 4.3 billion euros($6.3 billion) in a rights offer to help repay government funds. BNP Paribas is offering existing investors 107.6 million shares at 40 euros each, or 29% below Monday’s closing price, the Paris-based bank said on Tuesday.



 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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