Date: 13 November 2009
Thought for the day
“Small differences in your performance can lead to large differences in your results.”
1)Australian Prime Minister Kevin Rudd on Thursday said he was disgusted by attacks against Indian students in his country and promised the culprits will face the “full force of Australian law enforcement”. Rudd is in New Delhi on a two-day visit to discuss a range of issues.
2)INDUSTRIAL output grew by a surprisingly strong 9.1% in September from a year ago, reinforcing optimism that economic recovery is on track and imparting urgency to the debate over the timing of the withdrawal of stimulus measures that were put in place to counter the slowdown.
CORPORATE / INDUSTRY
3)ADITYA Birla Group may scale up its equity stake in Grasim Industries next financial year to ring-fence the viscose staple fibre maker and the holding company of the group’s cement entity Ultra- Tech Cement from any hostile take-over attempt, two persons close to the matter said.
4)Engineering giant Larsen and Toubro(L&T) is selling one-third of its 6.9 per cent stake in Mahindra Satyam, formerly Satyam Computer Services. The transaction is expected to fetch Rs 304 crore for the company, said banking sources close to the development.
MONEY & BANKING
5)The rupee on Thursday lost a hefty 35 paise to close at 46.65/66 against the dollar on renewed demand for the US currency amid fears of more capital outflows.
6)THE Indian diaspora has made a comeback in a big way to park its savings with local banks. Emigrants have more than doubled the money parked with various Indian banks during April-September ’09. Indian banks have mobilised $2.7 billion during April-September09 from non-resident Indians (NRIs) against inflows worth $1.1 bn in the year-ago period, Reserve Bank of India’s(RBI) latest data re- leased on Thursday show.
7)A sell-off in banks and metals, as well as weak regional markets, dragged shares lower on Thursday, despite monthly industrial out- put data showing signs that the economy is recovering. The BSE’s 30-stock Sensitive Index lost 153.57 points, or 0.9 per cent, to end at 16,696.03 in choppy trade. It swung between 16,605.01 and 16,896.62 during the session. On the National Stock Exchange, the 50-stock S&P CNX Nifty fell 51.30 points, or 1.0 per cent, to 4,952.65.
8)At least 16 real estate firms are set to come up with their initial public offerings(IPO) to raise Rs 9,000 crore in the next three months. “Going by the DRHPs(Draft Red Herring Prospectus) submitted by the 16 real estate companies, they are planning to raise at least Rs 9,000 crore. This is going to be raised in the next three months,” Knight Frank India Chairman Pranay Vakil said on the sidelines of a Ficci-organised summit.
9)LEADING multi-system operator Hathway Cable & Datacom is readying for a listing on local bourses through an initial public offering (IPO). The Rajan Reheja group-owned company plans to raise Rs 600-625 crore through an issue of 27.75 million(2.775 crore) shares, including fresh infusion of two crore shares and sale of 70 lakh share sale by promoters and investors. The public offer is likely to hit the market by the middle of next month.
10)Fixed income funds saw the largest net inflows among all fund categories in October. Apart from gold exchange-traded funds, no other category saw net inflows in the month, according to data from the Amfi. Fixed income funds saw inflows of Rs 1,51,271 crore, pushing the total net inflows of domestic mutual funds to Rs 1,41,291 crore. In October last year, the fixed income category had witnessed net outflows of Rs 52,820 crore.
11)Reliance Mutual Fund has been awarded with the ‘Asia Risk Award’ by Asia Risk magazine for being the first Indian asset management company to implement an enterprise-wide risk management system. “Reliance’s focus on careful risk management has yielded stellar results in 2009, and it is gradually emerging as one of the Asian heavyweights from the nascent, but fast-growing Indian asset management market,” Reliance MF said in a statement.
12)Gold prices hit record high on Thursday on investors buying the metal as an alternative to the weakening dollar, but edged off the peak as the US currency bounced back from lows in European trade. Spot gold rallied to a record $1,122.85 an ounce in Asian trade. Its strength helped lift other precious metals, with paladium, platinum and rhodium all reaching their highest in more than a year as speculative money poured into the market.
13)Gold prices today crossed the crucial Rs 17,000 per 10 gm level in the bullion market in New Delhi, buttressed by frantic buying by jewellers for the ongoing marriage season amid a firming global trend.
14)India’s turmeric futures retreated after hitting new highs on Thurs- day on profit-taking prompted by higher margin imposed by exchange, analysts said. The National Commodity and Derivatives Exchange has imposed an additional special margin of 10% on the long side of all turmeric contracts from Monday. The benchmark December turmeric on NCDEX hit a high of Rs 12,375 per 100 kg in early trade on modest spot demand, dwindling stocks and concerns rains may damage crop, analysts said.
15)Driven by price corrections, softening of interest rates and im- proved liquidity, the real estate industry is on the path of recovery on the back of improved demand in the residential segment. “After a rough phase that lasted for over a year, the Indian real estate industry is on the path of recovery. The residential real estate segment, which is leading the recovery, has witnessed a revival in demand, primarily due to improved affordability,” a Ficci-Ernst & Young report said. The two-pronged strategy of the developers- improving balance sheets and focusing on developing self-funded projects – are now bearing results and helping in the recovery of the industry with a revival of demand in the residential sub-segment.
16)Real estate prices, including residential and commercial, are likely to go up 15-20% in the next quarter, across Indian cities, say top builders and international property consultants. The reasons they cite are hike in land cost, infrastructure cost and a rise in demand for homes by 10% to 15% across Indian cities. Industry experts believe that the rise in real estate prices will come at a time when the Reserve Bank of India(RBI) is likely to hike interest rates on home loans by 25 to 50 basis points in the next quarter.
17)The competition has started becoming intense in the real estate market with top builders witnessing actual sales conversion of residential apartments in the metro cities during the first seven months of the current financial year. Enthused by the response, builders are charting fresh strategies to increase the number of residential projects.
18)Mahindra Lifespace Developers Ltd(MLDL), the real-estate and infrastructure development arm of the Mahindra group, on Thursday announced the launch of ‘Aqualily’ – a premium residential gated- community being developed within Mahindra World City, an integrated business city near Chennai. The Rs 400-crore project is being developed by Mahindra Residential Developers Ltd, a subsidiary of MLDL in joint venture with Arch Capital, an Ayala group company.
19)IF A Department of Telecom(DoT) directive does take its course, mass disconnections will occur in the country on December 1 as the nation attempts to quell a Chinese threat, of the mobile handset variety. The Indian Cellular Association(ICA), apex body of the range of mobile industry players barring the mobile operators, esti- mates that as many as 25 million handsets, a good number of them of Chinese make, will face disconnection that day for not having the required international mobile equipment identity(IMEI) number.
BUSINESS PROCESS OUTSOURCING
20)INDIA’S second biggest software exporter Infosys Technologies on Thursday acquired US-based back-office firm McCamish Systems for around $38 million to tap into the over $5-billion insurance services market in the country.
21)INFOSYS Technologies has established a separate subsidiary in the US for serving government and healthcare customers locally and cope with American laws that prohibit offshoring of sensitive citizen data, a top company official told financial analysts last month. With America poised to spend over $100 billion on modernisation of the country’s healthcare and other government systems, tech firms including Tata Consultancy Services(TCS), Infosys and Wipro are attempting to expand their local operations for addressing this lucrative opportunity.
22)US computer giant Hewlett-Packard announced on Wednesday that it has agreed to buy networking company 3Com for $2.7 billion, a move it hopes will help them further expand in the growing Chinese market.
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