Headlines (13 Oct 2009)

Date: 13 October 2009

 Thought for the day

“Every adversity carries with it the seed of an equivalent or greater benefit.”

 –Napolean Hill


1)India successfully test-fired in quick succession two nuclear- capable Prithvi-II surface-to-surface missiles with a range of 350 km from the Integrated Test Range at Chandipur off the Orissa coast on Monday. The two indigenously developed missiles were test-fired successfully at 10:28 am and 10:33 am from mobile launchers as part of user trials by the Army, defence sources said.



 2)INDUSTRIAL growth rebounded to a 22-month high of 10.4% in August as companies bumped up production to meet the strong demand for consumer durables. Electricity and mining sectors pitched in with a double-digit growth, forcing economists to revise their forecast of national income for 2009-10 by an average of half a percentage point.


3)Foreign direct investment(FDI) inflows into India rose 40.37% in August at $3.26 billion against $2.32-billion FDI received in the same month last year, on higher investment by investors in expanding existing business operations in the country.



4)Welspun-Gujarat Stahl Rohren, the flagship company of the Welspun Group, has said its outstanding order-book has reached the Rs 10,000-crore mark. The figure in the order-book includes order executed during the second quarter of the financial year 2009-10.



5)Riding on a strong surge in the equity markets, the rupee on Mon- day pared most of the losses but still ended down by eight paise at 46.48/49 against the US dollar.


6)BUOYED by a surge in loan disbursement, the country’s biggest mortgage lender HDFC reported a 24.2% rise in net profit for the second quarter ended September 30. Net profit for the three months rose to Rs 663.9 cr against Rs 534.2 cr in the year-ago period amid a 24% rise in loan offtake.


7)Axis Bank on Monday posted a 32% rise in its net profit at Rs 531.64 crore in the second quarter of 2009-10 fiscal. The bank had recorded a net profit of Rs 402.91 crore in the corresponding period of the last fiscal.


8)South Indian Bank Ltd(SIBL) on Monday announced 40.43% growth in net profit for the second quarter this fiscal compared to the cor- responding quarter previous year. “The bank has registered highest- ever quarterly net profit of Rs 72.57 crore during the second quarter of this financial year against Rs 51.68 crore for the same period last year,” bank’s MD&CEO VA Joseph said. “This growth is the highest ever in the 80 years of existence of the bank,” he added.



9)Insurance Regulatory Development Authority(Irda) is mulling options to allow banks to tie up with two to three insurance companies to sell their insurance products, a senior Irda official said. At pre- sent, banks cannot have tie ups with more than one insurer.



 10)The domestic equity bourses started the week on a solid note after the latest data showed a surge in industrial output in August 2009. The 30-share Sensex of the Bombay Stock Exchange(BSE) surged 384.01 points or 2.31% to end the trading session above the psycho- logical 17,000 level at 17,026.67 points. On the other hand, the broader 50 share Nifty of the National Stock Exchange(NSE) closed the day at 5,054.25 points, gaining 2.21% or 109.05 points.


11)FOREIGN funds have increased their holdings in a host of bluechip firms during the second quarter ending September, endorsing their faith in India and highlighting the allure of the country’s growth prospects as a hedge against a falling dollar. Of the 59 A-group companies that have so far released shareholding data for July-September quarter, foreign institutional investors(FIIs) have raised stakes in as many as 41 firms, many of them spanning sectors such as real estate, banking and pharmaceuticals.


12)All markets, including the Bombay Stock Exchange, the National Stock Exchange, Forex, Money, MCX futures, Bullion and Oils and Oilseeds, will remain closed on Tuesday on account of Assembly elections in Maharashtra.



 13)The initial public offering (IPO) of Indiabulls Power got subscribed nearly six times on the first day of issue on Monday asinstitutional investors flooded the counter with maximum number of bids.


14)Jubilant Foodworks, which runs the Indian franchise for global fast food chain Domino’s Pizza, on Monday filed an application with market regulator Sebi for an initial public offering to raise up to Rs 300 crore.



15)The board of directors of Bajaj Electricals Ltd has approved the sub-division of equity shares from 1 equity share of Rs 10 each to 5 equity shares of Rs 2 each, to improve the liquidity of the equity shares with higher floating stock in absolute numbers, subject to approval of shareholders and other authorities.



 16)A NEW investment theory is gaining favour with wealth managers and mutual funds, something that could soon replace the conventional systematic investment plans(SIPs) strategy. Termed value averaging investment(VAI), the technique allows investors to determine the size of investment needed (at the time of investing) to get desired returns. Value averaging works much like rupee cost averaging, which forms the basis of systematic investment plans. “While SIP investments are made on fixed dates, irrespective of market conditions, VA investments are made on dates when the markets look investible. The best aspect of VAI is that it enables investors to buy stocks at dips – a facility that is not really possible in SIPs,” said Nipun Mehta, head of Societe Generale Private Banking India.


17)FIXED Maturity Plans or FMPs – that helped fund houses turbocharge their assets under management – appear to be making a comeback, albeit in a smaller way. Hardening interest rates, improving financials of companies and a taxation benefit are drawing some investors back to this close-ended debt product.


18)Union Bank of India has received the approval from the Securities and Exchange Board of India to start its joint venture mutual fund company with Belgium-based KBC group. The JV-Union KBC Asset Management Company – expects to roll out its first MF product in the market as early as February, 2010.



19)Gold prices rose back above $1,055 an ounce on Monday as the dollar turned lower against the euro, adding to upward pressure from rising oil prices and improving jewellery demand.


20)Prices of silver coins on Monday touched an all-time high level of Rs 32,700 per 100 pieces in the bullion market in New Delhi on brisk buying ahead of Diwali. Silver prices spurted by Rs 230 to 27,550 a kg on emergence of buying by industrial units. Silver weekly-based delivery rose by Rs 210 to Rs 27,535 a kg. Mean- while, standard gold an ornaments rose by Rs 45 each to Rs 16,095 and Rs 15,945 per 10 gm, respectively. Sovereign held steady at Rs 12,950 a piece of 8 gm.


21)Copper prices rose on Monday as a recent raft of improving data brightened the demand outlook, but optimism was capped by a fresh rise in inventories. Copper for three-months delivery on the London Metal Exchange traded at $6,285.50 a tonne at 0942 GMT from a close of $6,230 on Friday.



 22)INDIA’S communications regulator is all set to take the first steps towards permitting consolidation in the country’s fragmented telecom space in a bid to address concerns of both operators and the government that existing policies which act as roadblocks for M&As will destroy the sector. The regulator is examining several issues including changes in policy that will allow operators to buy each other out and sell spectrum or radio waves between themselves. Spectrum is the lifeline for telecom companies in India.



 23)AN Increasing number of business process outsourcing(BPO) firms in India are now making a beeline to locations outside of the major metros with the focus of having lower operating costs and serving the local market. Aditya Birla Minacs, a top 10 BPO firm in India and part of the Aditya Birla Group, is adopting the ‘hub and spoke’ model to get into the tier-III and rural locations.



 24)IN what could be an almost $7-billion services opportunity for Indian tech firms apart from other multinational rivals, top business software customers including Siemens are questioning heavy product maintenance fees paid to companies such as SAP and are exploring third-party maintenance with Indian tech firms among other global vendors.



 25)Oil rose by more than $1 a barrel to a six-week high above $73 on Monday, supported by optimism about the pace of global economic recovery and indications of stronger oil demand.



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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