Date: 26 October 2009
Thought for the day
“Never promise more than you can perform.”
1)Seeking to put behind the recent irritants in bilateral ties, India and China have reaffirmed the need to maintain peace and tranquility on border and agreed to resolve all issues in the spirit of strategic and cooperative partnership.
2)The Prime Minister, Dr Manmohan Singh, today said the global economy was not fully out of trouble and ruled out any premature withdrawal of stimulus packages announced by the Government to boost the industry.
3)Adding shine to the momentum of economic recovery, the CII business confidence index(CII-BCI) has predicted a return to better business conditions than what was before the downturn. The index for the period between October 2009 and March 2010 surged by a robust 7.4 points to 66.1 points, against a mere 2.4 point increase during the first half of the fiscal.
CORPORATE / INDUSTRY
4)THE Rs 3,866-crore pharma major Lupin will go in for overseas acquisitions within six to nine months. Company sources told ET: “Lupin is negotiating with a few companies in Gulf, Mexico, Brazil and Argentina, as it intends to increase its footprint in newer markets. The acquisition would be of companies involved in pharma marketing or those who have a mix of marketing and manufacturing base.”
5)AIR TRAVEL and hotel bookings for the year-end holiday season have picked up, providing further proof that economy is looking up. While international carriers have advance bookings for nearly half of their seats for the December-January period, hotels have seen 3-5% rise in occupancy in October in some key cities after many months of decline.
MONEY & BANKING
6)The Reserve Bank of India(RBI), which will unveil its mid-term re- view of the monetary policy on Tuesday, is expected to push banks for expanding credit. For, bank credit growth fell to a 12-year low of 10.8% as on October 9, from 29.5% in the same period last year, according to RBI’s latest weekly statistical supplement released on October 23.
7)In a bid to expand the reach of the New Pension Scheme(NPS) for private citizens, which has only managed 2,300 subscribers since its launch five months ago, the Pension Fund Regulatory and Development Authority(PFRDA) has invited fresh applications from financial services providers for becoming the scheme’s Points of Presence(PoPs).
8)The country’s equity indices are set to take cues from two major events in the coming week – the Reserve Bank of India’s(RBI) monetary policy on October 27(Tuesday) and the expiry of futures & options(F&O) series for October also due in the coming week. However, domestic markets are likely to witness intense volatility in the coming days as it was seen last week, say dealers.
9)With the Securities and Exchange Board of India(Sebi) allowing the extension of trading time by two-and-a-half hours, stock brokerage companies fear loss in productivity. However, they expect a rise in volumes simultaneously, at virtually no big rise in costs. At present, trading hours are from 9:55 am to 3:30 pm. Sebi has allowed exchanges to start trading by 9 am and continue up to 5 pm. Most of the brokers have welcomed Sebi’s move, as it may result in higher volumes.
10)NEARLY half a dozen textile firms are lining up to raise money through initial public offerings at a time when the Indian textile industry is battling a slump in exports, cut-throat competition and currency volatility. Companies such as Ankita Knitwear, Sai Silks Kalamandir, Emmbi Polyarns, Cantabil Retail and Mandhana Industries have sought the approval of market regulator Sebi for launching initial public offerings(IPOs).
11)Edible oil and poultry products maker Tara Health Foods has sought approval from the capital market regulator Sebi, for an initial public offer(IPO) of one crore shares.
12)Lavasa Corporation, a subsidiary of Mumbai-based Hindustan Construction Company, plans to raise around Rs 2,000 crore through an initial public offering(IPO) during the second half of next year.
MERGERS & ACQUISITIONS
13)HEMENDRA Kothari did the Raasi Cements deal, Nimesh Kampani did the Sesa Goa deal. Uday Kotak did the BSE deal. That’s the way mergers and acquisition deals used to be discussed in India till recently. But this is changing. Now it is institutions such as JP Morgan, Stanchart or Deutsche, to consider three banks active in the Indian market, which do deals.
14)Turmeric prices in the spot markets have reached record levels in the last few days because of dwindling carryover stocks and increased speculative activities. Traders said prices have more than doubled in a span of just a year also owing to extensive damage to the standing crop. Spot prices at Erode market(the largest wholesale market for turmeric) have increased by Rs 10 per kg in three days after Diwali to touch Rs 95. Karvy Comtrade reports that the bullish trend in turmeric started with the down- fall in production, from 52 lakh bags in 2007-08 to 42 lakh bags this year. As India is the largest producer and exporter of the commodity across the globe, any shortfall here is enough to trigger the sentiments throughout the world, sources said.
15)The pepper market world over appears to be showing some buoyancy. Prices of all the origins were firmer and there were some buying interest emanating from the major consuming markets.
16)Realty firm TDI Infrastructure plans to invest Rs 1,000 crore in the next couple of years to develop affordable housing projects. “We have earmarked Rs 1,000 crore for affordable housing projects. We have already sold 800 independents floors at our township at Kundli(Sonepat) and more such projects are in pipeline,” TDI executive director Kunal Banerjee said.
17)WITH Microsoft Corp commercially rolling out its latest bet – the much-awaited Windows 7 operating system – leading vendors feel this will trigger a huge revival of the PC market. Small wonder then that Hewlett-Packard(HP), HCL, Samsung, Dell and Acer are gearing up their act around this latest platform.
18)AS India’s top tech firms prepare to bid for projects worth almost Rs 5,000 crore to set up the country’s unique citizen database, Tata Consultancy Services(TCS) plans to bid jointly for this opportunity along with CMC, a government-focussed subsidiary it acquired some eight years ago. The World’s biggest citizen database being set up by the Unique Identification Authority of India(UIDAI) will rely heavily on biometric and fingerprint information of the country’s 1.2 billion citizens, and would seek solution providers who can bring relevant expertise.
19)THE $500-million Indian language translation market is poised for a big growth as more and more multinational companies are setting up shops in the country expecting the sunrise industry to go miles in the next three years. The Asian language translation market revenue accounted for $1,312 million in 2008 and is projected to reach $1,410 million in 2009 and touch $1,516 million in 2010, according to research and consulting firm Common Services Advisory.
20)The economy in the US probably grew in the third quarter at the fastest pace in two years as government stimulus helped bring an end to the worst recession since the 1930s, economists said before reports this week. The world’s largest economy grew at a 3.2 per cent pace from July through September after shrinking the previous four quarters, according to the median estimate of 65 economists surveyed by Bloomberg News. Other reports may show sales of new homes and orders for long-lasting goods increased.
FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd www.karvy.com
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