Date: 15 October 2009
Thought for the day
“Self-image sets the boundaries of individual accomplishment.”
— Maxwell Maltz
1)INDIA and Argentina on Wednesday signed 10 agreements, including one for civil nuclear energy cooperation, and pledged to triple their bilateral trade to $3 billion by 2012. Argentinian President Cristina Fernandez de Kirchner arrived here on Tuesday and held extensive discussions with Prime Minister Manmohan Singh on Wednesday. A joint statement was released after the meeting. This was the first visit to India by a head of state from the South American nation in 15 years.
CORPORATE / INDUSTRY
2)Reliance Industries, which owns the world’s biggest oil refining complex, is in advanced talks to acquire refinery and petrochemical units in the US and Europe and could finalise a deal by end-2009, a senior company executive said on Wednesday.
3)MAX India’s Analjit Singh is poised to become the biggest share- holder in EIH and join the founding Oberoi family as co-promoter and vice-chairman of India’s third largest hotel chain, two executives with direct knowledge of the development told ET. A deal, likely to be finalised early next month, will result in Mr Singh owning a little over 26% in EIH, the operator of the Oberoi and Trident brands and the third largest hotel chain behind Indian Hotels and ITC.
4)Larsen & Toubro (L&T) has bagged order worth Rs 966 crore in the construction-related sector from Sterlite Industries, Uttar Pradesh Jal Nigam and Gujarat Water Infrastructure. The company will build a four lakh tonne per annum smelter plant at Tuticorin in Tamil Nadu for Sterlite Industries at an estimated cost of Rs 225 crore. The project is to be completed in 18 months.
5)ADITYA Birla Nuvo, the sole diversified company of the $29-billion Aditya Birla group, is finalising a plan to spin off its financial ser- vices business comprising asset management, insurance, stockbroking and distribution to a wholly-owned subsidiary to unlock share- holders value.
MONEY & BANKING
6)The rupee gained 35 paise against the dollar on Wednesday and came very close to breaching the 46 level, on the back of sustained FII inflows. The domestic currency opened with a positive gap at 46.28 and rose to touch an intra-day high of 46.02. It closed at 46.13, against Monday’s close of 46.48/49. These levels were last seen in September 2008.
7)THE PRIME minister’s top economic adviser has said that the Re- serve Bank of India is unlikely to change key rates in response to rising inflation when it meets on October 27 for a review of monetary policy. C Rangarajan, a former RBI governor and the chairman of the Prime Minister’s Economic Advisory Council, said on Tuesday that the central bank can maintain its accommodative monetary policy for the time being unless there is a sharp spike in inflation.
8)THE country’s second largest private bank has beat analysts’ expectations with a net profit of Rs 687 crore for the quarter ended September ’09 – a 30.2% increase over Rs 528 crore reported in the corresponding period last year.
9)Riding on good performance on various parameters like net interest income(NII), total non-interest income and core fee-income, the net profit of IndusInd Bank grew by 131% to Rs 77.82 crore for the quarter ended September 30, 2009 as against Rs 33.66 crore in the corresponding period a year ago.
10)Bajaj Auto Finance on Wednesday said its net profit jumped more than fourfold to Rs 21.69 crore for the quarter ended September 30, 2009, over the same period last year. Total income rose to Rs 219.46 crore in the latest quarter, against Rs 136.82 crore in the same period last fiscal, Bajaj Auto Finance said in a filing to the BSE.
11)Universal life policies (ULP) will soon make a debut in the country with the Insurance Regulatory and Development Authority (Irda) approving ULPs of two life insurance companies, Bharti Axa Life Insurance and Max New York Life. Under ULPs, customers have flexibility in premium, sum assured as well as the tenure of the product.
12)Strong corporate earnings, encouraging Index of Industrial Production numbers and bullish sentiment across the globe pushed the benchmark indices to a 17-month high. The BSE Sensex soared 1.2 per cent to close at 17,231 and the NSE Nifty was up 1.27 per cent at 5,118. The Sensex rose to 17,274.59 during intra-day trade, its highest since May 21, 2008. All the sectoral indices on the BSE ended in the black, except the TECK Index. FIIs continued their buying spree as they were net buyers of equity for Rs 1,443.78 crore, while domestic institutional investors were net sellers of equity worth of Rs 196.9 crore.
13)The ongoing tariff war seems to be doing more damage than good to the valuations of telecom scrips. In what seems to be a reflection of shifting investor priorities, IT major Infosys has emerged as a more valuable firm than India’s biggest mobile operator – Bharti Airtel – on the basis of Wednesday’s market capitalisation. At the end of Wednesday’s trading session, the M-cap of Infosys was Rs 1.29 lakh crore($28 billion), a tad higher than Bharti’s M-cap of Rs 1.28 lakh crore($27.9 billion). With this, Infosys has re- placed Bharti to become the seventh-most valuable company in the Indian stock market.
14)Securities and Exchange Board of India has cancelled the certificate of registration granted to Pinnacle Shares Registry Private Ltd as registrar to the issue and share transfer agent with effect from February 28, 2010. During the intervening period, the regulator has ordered the firm not to take on new clients.
15)The initial public offer(IPO) of Indiabulls Power Limited, which was fully subscribed within minutes of its opening, was further subscribed to by close to nine times on Wednesday with a strong response of 16.2 times from HNIs and three times from non-institutional segments. The issue will close on Thursday.
16)IT IS a case of old wine in a new bottle many a time when it comes to new fund offerings(NFOs) by mutual fund houses. But fund houses may no longer have the freedom to launch NFOs that have similar features as some of their existing schemes.
17)The National Commodity and Derivatives Exchange(NCDEX) has reduced the special margin, which is imposed to curb volatility, by half to 10% on buyers side in all futures contracts in turmeric. The ex- change had increased the special margin in August up to 20% on buyers side in all turmeric futures contracts and yet to be launched contracts. It has now been brought down to 10%.
18)Copper rose on Wednesday, spurred by a weak dollar and data showing Chinese imports of the metal jumped unexpectedly in September. Cop- per for three-month’s delivery on the London Metal Exchange traded at $6,255 a tonne at 0928 GMT from a close of $6,140 on Tuesday.
19)With only few days left for Diwali, gold prices today scaled a new high of Rs 16,250 per 10 gram on hectic buying by stockists to meet the enhanced festival demand from retailers and fabricators. Marketmen said gold soared in tune with global rates, where prices touched a new peak of $1,070.80 an ounce on weakening of dollar against its major rivals.
20)The price of guar seed, an important cattlefeed crop, may rise by another 25 per cent by December, due to record low output estimates for this kharif season. It has already jumped 10 per cent in one month, to trade at more than Rs 2,300 a quintal in Rajasthan, the major producer.
21)The demand pick-up in housing, improved cash position, and new project launches have put real-estate companies back into the hiring mode. Builders including Unitech Ltd, Ansal API and BPTP have launched recruitment drives for civil engineers and sales and marketing professionals for new and existing projects, as the market limps back into buisness after a prolonged slowdown.
22)HAVING sold its back-office and IT captives to TCS and Wipro last year, Citigroup is now exploring the sale of its internal technology platforms bundled with outsourcing contracts worth $350 million, as the bank seeks to exit non-core businesses and outsource more processes.
23)OIL prices on Wednesday soared to new highs for the year because of a weak dollar and the upcoming holiday shopping season that could bring more traffic to the roads. Benchmar crude for November delivery added 78 cents to $74.93 on the New York Mercantile Ex- change. Prices jumped as high as $75.40 a barrel earlier in the day.
24)THE Dow Jones industrials neared the 10,000-milestone on Wednesday for the first time in a year as robust results from JP Morgan Chase and Intel boosted the outlook for earnings. Major indexes gained more than 1%, and the Dow’s reclaiming the psychological 10,000 level could convince some doubters of the durability of the stock market’s seven-month rally. JP Morgan, the first major US bank to report quarterly earnings, said profits rose sharply as underwriting revenue at its investment bank offset deeper losses on credit cards and other consumer loans.
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Economic Times www.economictimes.com
The Financial Express www.financialexpress.com
Business Line www.businessline.in
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The Times of India www.timesofindia.com
The Hindu www.hindu.com
Deccan Chronicle www.deccan.com
The New Indian Express www.newindpress.com