Date: 23 October 2009
Thought for the day
“The greatest thing in life is to keep your mind young.”
1)The armed forces are now gearing up to storm the final frontier of space. India’s first dedicated military satellite, a naval communications one, will finally be up and running in the sky early in 2010.
2)THE annual rate of inflation, as measured by the Wholesale Price Index(WPI), touched a twenty-week high of 1.21% for the week ended October 10, a release by the government on Thursday showed. Inflation was 0.92% the week before. The rapidly increasing inflation should not worry the Reserve Bank of India(RBI) just before the upcoming monetary policy review on October 27. The apex bank has already built-in a year-end 5% inflation in its policy and is unlikely to tinker with things unless there is some dramatic change.
3)The Planning Commission expects the economy to stage a full recovery by next fiscal and register a growth of 8%. It also expects last year’s final GDP number to be a tad higher than the revised estimate of 6.7%.
CORPORATE / INDUSTRY
4)THE world’s largest pharma company Pfizer is leaving no stones unturned to pursue inorganic growth in India. The American giant has sent feelers or directly approached several big and mid-sized pharma companies for a stake buy or business alliance. The Indian companies that have been on the American company’s radar include Zydus Cadila, Emcure, Intas Pharma and Mankind Pharma, but most of the Indian companies have not reciprocated, people familiar with the matter said.
5)Power transmission company KEC International said it has bagged orders aggregating to Rs 470 crore from West Asia and Africa to design, engineer and supply power distribution equipment. The company has bagged orders from clients in Saudi Arabia and Chad for construction and supply of power distribution equipment.
MONEY & BANKING
6)A strong dollar overseas coupled with weak domestic bourses pulled the rupee down on Thursday to its lowest in two weeks at 46.74/75 against the US dollar, a fall of 26 paise over the previous week.
7)The recovery of Indian economy may be more than expected but the credit offtake situation is heading towards bad to worse with every passing fornight. The loan growth in the banking industry has dipped 10.75% for the year ending October 9,2009, as against 12.62% for year ending 25 September 2009, showed the data released by the Reserve Bank of India(RBI), on Thursday.
8)SPURRED by an over 200% growth in non-interest income, Kolkata- based Allahabad Bank on Thursday reported an eight-fold jump in net profit at Rs 333.59 crore for the quarter ended September 2009 (second quarter) from a modest Rs 41.68 crore in the earlier cor- responding period.
9)The Credit offtake in banks is likely to gather momentum during the second half of the current fiscal year. It will be much better than what the banking sector witnessed during the first six months of this year, said OP Bhatt, chairman, State Bank of India(SBI).
10)With the country’s equity indices continuing their downward journey for the third consecutive session following weak cues from global markets, coupled with profit booking, overseas investors have been net sellers during the past two days. However, domestic institutional investors(DIIs), especially insurance companies, see this as a buying opportunity and, therefore, could arrest a strong downslide. Foreign institutional investors(FIIs) were selling, as valuations had shot up and there would be profit-booking at these levels, feel dealers. The 30-share Sensex of BSE lost 219.43 points or 1.29% to end below the 17,000-mark at 16,789.74 points. The broader Nifty of the NSE tanked 75 points or 1.48% to close the day at 4,988.60 points.
11)Marico Shares rose 3.78 per cent to close the day at Rs 101.65 on hopes of robust sales and earnings in the July-September quarter due to higher volumes and lower raw material costs. The company will declare second-quarter results in October. The stock was the biggest gainer in BSE’s ‘A’ group and closed at an all-time high.
12)The initial public offering(IPO) of Den Networks, through which the cable company is planning to garner around Rs 400 crore, will hit the market on October 28. Den Networks’ IPO of up to two crore equity shares in a price band of Rs 195-205 will start on October 28 and closes on October 30, 2009, a company release said.
13)DESPITE a dip in new collections and a lacklustre NFO market, the mutual fund industry is drawing new players. Enam, the investment banking and brokerage group controlled by Vallabh Bhansali and Nimesh Shah, is planning to set up a fund house. Recently, Enam Asset Management has applied for an AMC licence with capital markets regulator Sebi. With this, Enam joins the queue of as many as 17 AMCs, local as well as foreign, awaiting Sebi’s green signal.
14)Engineering and construction major Larsen & Toubro(L&T) posted a 26% rise in net profit at Rs 580.40 crore for the second quarter of FY10, compared with Rs 460.26 crore a year earlier. This was aided by exceptional gains of Rs 107.84 crore. The company recorded a lower-than-expected 2.5% increase in total income, at Rs 7,918.84 crore for the quarter, compared with Rs 7,725.07 crore a year earlier.
15)Asian Paints’ net profit grew 108 per cent to Rs 254.32 crore for the quarter ended September 30, against Rs 121.71 crore for the year-ago period. Total income has increased to Rs 1,472.91 crore from Rs 1,186.09 crore, a growth of 24 per cent.
16)Bangalore-based biotech major Biocon has more than tripled its net profit to Rs 76 crore in the July-September quarter compared with Rs 25 crore in the same period last year. Total revenue during the period rose 31 per cent to Rs 581 crore, according to the consoli- dated results announced today.
17)Leading commodity exchange MCX has received market regulator FMC’s approval for launching futures trading in imported thermal coal and is likely to commence business next year. The Forward Markets Commission(FMC) has approved imported thermal coal contracts for launch between January and June 2010, an official FMC statement said.
18)Pure gold prices rallied to a historic peak on the bullion market in Mumbai today even as standard gold hit an all-time high figure on persistent buying by stockists. Standard gold(99.5 purity) shot up by Rs 115 for 10 gm to Rs 16,035. Pure gold(99.9 purity) surged to Rs 16,115. Silver ready(.999 fineness) too strengthened by Rs 205 a kg to Rs 27,645.
19)Not content with its joint bid for Kuwait-listed Zain Telecom, state- owned Bharat Sanchar Nigam Ltd(BSNL) and Mahanagar Telephone Nigam Ltd(MTNL) are planning to set up a special purpose vehicle (SPV) with Delhi-based Vavasi group to participate in a joint venture for Russian and western European telecom operations.
20)Microsoft Corp on Thursday finally launched the long-awaited operating system(OS) Windows 7. It will replace the failed OS Vista and the earlier version Windows XP, that still dominates most of the one-billion-plus global desktops.
21)INDIAN outsourcing vendors are gearing up for significant business opportunities from the launch of Microsoft’s Windows 7(Win 7) in the areas of IT consulting, systems integration and infrastructure management as their clients look at migrate from their old operating systems(OS) to Win 7. According to industry estimates, an overwhelming 80% of systems still run on Microsoft’s older OS, Windows XP, which was released eight years ago, making a strong case for upgradation.
22)Wipro Ltd has formed a joint venture with Delhi International Air- port (P) Ltd to offer IT services to airports across the country and abroad. Wipro will own 74 per cent stake in the joint venture, Wipro Airport IT Services Ltd, in which DIAL will hold the rest.
23)Oil slipped below $81 on Thursday as a stronger dollar encouraged investors to lock into profits from a 12-month high hit the previous day. US crude oil futures fell 68 cents to $80.69 a barrel by 1359 GMT, having dipped as low as $79.90.
24)China’s economy expanded at the fastest pace in a year, as stimulus spending and record lending growth helped the nation lead the world out of recession. GDP rose 8.9% in the third quarter from a year earlier.
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