TODAY’S NEWS HEADLINES (21-03-2011)

Date: 21 March 2011
 
Thought for the day
 
“Never attack a problem without also presenting a solution.” —Jim Rohn
 
GENERAL
 
1)Marking the beginning of spring, the sun will cross the plane of the earth’s equator on Monday morning, making day and night of approximately the same duration. The event, known as equinox, is eagerly awaited by space enthusiasts as it takes place only twice a year, on March 21 and September 23. On equinox, the sun moves across the celestial equator, which lies directly above the Earth’s equator. When the sun crosses the plane, it rises exactly in the east and sets exactly in the west.
Hindu
 
CORPORATE / INDUSTRY

2)Bharati Shipyard plans to focus strongly on the offshore and defence segments and expects an over Rs 2,000-crore of orders over the next one-year, a top company official said.
ET

3)Aditya Birla Minacs is eyeing acquisitions in finance & accounting, in a bid to complement yet another buy in the same space last year. “We want to go for a bigger acquisition in this space,” said Deepak Patel, Global CEO of Aditya Birla Minacs.
FE

4)For the first time in five years, contract prices of iron ore the key raw material for making steel – will soften,
 as Japanese steel mills, that account for about 13% of global iron-ore consumption, have cut down on their requirement following production cutbacks.
ET

5)The Ashok Leyland and Nissan joint venture is to invest around Rs 2,500 crore for setting up a factory near Chennai to manufacture light commercial vehicles (LCVs).
BS

6)Domestic paper manufacturers are reporting a hike in global pulp prices on anticipation of huge demand from Japan, where production has been hit by the tsunami last week.
BL

MONEY & BANKING

7)India’s largest lender State Bank of India’s retail bonds, which were bid over four times the offer and were beyond the reach of millions of investors, may yield a 5% return when it begins trading on Monday.
ET

8)ING Vysya Bank has launched an Internet banking platform for its wholesale banking clients called ‘ING Coverage’. The platform addresses the payment and cash management requirements of corporates. The unique feature is that it allows a consolidated view across group accounts, even from other banks and across countries. The platform allows a company to access its multiple accounts and also those of its group companies.
BL

INSURANCE

9)New business premium (for individual regular policies) collections for life insurers fell 31 per cent in February,
 one of the steepest fall in recent months. The continued decline comes in the wake of more stringent norms imposed by the Insurance Regulatory and Development Authority (IRDA) on guaranteeing a minimum return on pension policies besides scaling down the amount of commission payable to the agents.
BL

MARKETS
 

10)Indian shares will be under pressure this week with the escalation of the Libyan crisis that is pushing up oil prices and Wikileaks weakening Prime Minister Manmohan Singh further, reducing the possibility of any economic reforms. China’s liquidity tightening, for the third time this year, will intensify investor belief that emerging markets, including India, will keep raising rates to tame inflation that will erode corporate profitability. The benchmark Sensex lost 1.6% last week. Any adverse news or events, especially in the wake of government presenting the Finance Bill will shake investor confidence in the government, analysts say.
ET

11)Rural Electrification Corporation (REC) plans to raise around $1 billion in 2011-12 through a corporate bond is-
 sue in the US, a senior company official said. The corporation has recently raised $500 million through a bond
 issue in the international market.
BL
 
IPO

12)This could be the year of a big overseas initial public offering (IPO) push from Indian mining, power, steel and infrastructure firms. And they could be headed towards the London Stock Exchange. Consulting firm Ernst and Young expects more Indian companies from these sectors to list overseas as they expand their global footprint by acquiring mineral assets.
BL

MUTUAL FUNDS

13)Mutual funds are again showing interest in banking stocks, while the automobile sector continues to lose the fancy of fund managers. With over 10 per cent correction in the banking index during the first two months of the current calendar year, fund houses’ exposure of total equity assets under management in bank shares is close to the October highs. According to the Securities and Exchange Board of India (Sebi), mutual funds have upped their exposure to the banking sector by 66 basis points(one basis point is one hundredth part of a percentage), to 16.78 per cent in February from 16.12 per cent in December.
BS

COMMODITIES

14)Pepper market during the week witnessed mixed trend with bullish sentiments taking the lead. At the same time firm prices in other origins indicate that there exists a tight supply situation, probably because of holding back by growers in India and Vietnam.
BL

COMMUNICATIONS

15)Emirates Telecommunications, the Middle East’s biggest phone company by market value, ended talks to buy a majority stake in Zain, Kuwait’s largest, citing political unrest and disagreement among shareholders.
ET
 
INFORMATION TECHNOLOGY

16)Paris-headquartered Capgemini, one of the world’s largest IT services companies, is in advanced talks to buy a controlling stake in mid-sized IT services provider Headstrong from the founders of the company and private equity investor Welsh, Carson, Anderson & Stowe, at least two people familiar with the development said on condition of anonymity.
ET
 
INTERNATIONAL

17)Libya is considering offering oil block contracts directly to China, India and other nations it sees as friends in its
 month-long conflict with rebels, Libya’s top oil official said on Saturday.
BS

18)Sony Corp and Nissan Motor Co said they’re preparing to resume production at some factories as Japanese manufacturers seek to recover from the strongest earthquake on record to jolt the world’s third-largest economy.
FE

19)Goldman Sachs said Friday it would pay $5.5 billion to repurchase the preferred stock bought by billionaire Warren Buffett’s Berkshire Hathaway at the height of the 2008 financial crisis. The Wall Street giant said the US central bank had given a green light to its capital plan for this year.
ET

Today’s Levels (21-03-2011)

Today’s Levels
(Last Close : Sensex 17879 : Nifty Spot 5374)
Trade long if Sensex sustains above 17840 (Nifty 5360)
[Upside targets/resistances at 17908(5383)/17980(5404) or higher]
Trade short if Sensex fails to sustain above 17908 (Nifty 5383)
[Downside targets/supports at 17840(5360)/17782(5340) or lower]

FOR THE DAY (21-03-2011)

FOR THE DAY: Domestic markets are likely to open on a flat-to-positive note, in response to the positive Global indices. Trade long if Nifty holds 5400-5410 levels with stop loss placed at 5380 targeting 5440-5465 levels. Alternatively, trade short in Nifty below 5380 levels with stop loss placed at 5400 targeting 5350-5330 levels.

FOR THE WEEK (21-25, March 2011)

FOR THE WEEK:The immediate resistance levels for the Sensex and Nifty are at 18350-18500-18750 and 5500-5550-5600, respectively, while the support level is at 17850-17750-17500 and 5380-5300-5250. Any move close to the resistance levels can be used to book partial profits and initiate fresh positional long positions only if the Sensex manages to hold support levels with strict stop losses.

TODAY’S NEWS HEADLINES (18-03-2011)

Date: 18 March 2011
 
Thought for the day
 
“Although the world is full of suffering, it is also full of the overcoming of it.”
—-Helen Keller

GENERAL
 
1)The Lok Sabha on Thursday completed the second stage of budgetary exercise by approving demands for grants for over 80 Ministries and Departments to the tune of over Rs 46 lakh crore for 2011-12 by applying guillotine
Hindu
 
ECONOMY

2)Food inflation slipped to a three-and-a-half month low in the week to March 5 as onion and milk prices declined, but fuel inflation registered a sharp increase because of a spike in coking coal prices. Food inflation eased to 9.42% from 9.52% in the previous week, data released on Thursday showed.
ET

3)India Inc paid robust advance tax in fourth quarter this fiscal, an indication of a better corporate performance despite concerns over margins and slowdown. The collections for January-March 2011 quarter are up about 30% from a year-ago period, according to preliminary data.
ET

4)The finance ministry has approved an interest payout of 9.5% on employee’s provident fund for 2010-11, bringing cheer to millions of subscribers six months after it raised objections to a 1% increase in the rate.
ET
 
CORPORATE / INDUSTRY

5)Reliance Infrastructure has bagged an engineering, procurement, and construction (EPC) order worth Rs 7,200 crore from group company Reliance Power for its 2,400 megawatts (mw) gas-fuel led Samalkot Power Plant in Andhra Pradesh. With this order, Reliance Infrastructure’s EPC order book stands at Rs 30,700 crore, the Anil Dhirubhai Ambani Group company said on Thursday.
ET

6)Sundram Fasteners(SFL), part of the TVS group, will make its biggest-ever annual capital investment in 2011-12 in an attempt to target the wind energy and automotive segments with new products. SFL plans to step up its capex to nearly Rs 200 crore, a third more than in 2010-11, with significant sums alloted for making wind turbine fasteners and bevel gears.
ET
 
MONEY & BANKING

7)The rupee depreciated by seven paise against the US currency on fall in equities. This came amidst a sluggish dollar on the back of yen nearing a new high on concerns of a nuclear catastrophe in Japan following a massive earthquake and tsunami. The rupee closed at 45.18/19 against the greenback.
BL

8)The Reserve Bank of India raised policy rates for the eighth time in a year by the expected 25 basis points to tackle inflation that is running disproportionately higher with a potential to whittle down the government’s cherished 9% economic growth.
ET

9)INTEREST rates on loans are unlikely to move up immediately despite the Reserve Bank of India’s (RBI) decision on Thursday to hike key policy rates by 25 basis points each, given that the busy season is coming to an end, most bankers say.
FE

MARKETS

10)Indian equity indices lost ground on Thursday over concerns of further monetary tightening after the Reserve Bank of India (RBI) raised key interest rates for the eighth time this year. Rate sensitive sectors, including bank, auto and realty came under heavy selling pressure as foreign investors also dumped Indian shares. The 30-share Sensex of the Bombay Stock Exchange (BSE) lost 208.82 points, or 1.14 per cent, to end at 18,149.87. Most of the sectoral indices also ended in the red. The market breadth was negative with over 1,600 stocks losing ground, as against 1,203 gainers. The broader Nifty of the National Stock Exchange(NSE) ended the day at 5,446.65, shedding 64.50 points or 1.17 per cent.
BS
 
MUTUAL FUNDS

11)Volatility in the Indian equity markets has pushed fund managers to sit on cash and enter the market once valuations start looking attractive. Average cash levels of equity schemes in the Indian mutual fund industry have increased to 6.33% of the total portfolio in February (highest in the last six months) with few equity schemes keeping cash levels in the range of 10-20%. These cash levels have inched up even more, according to industry sources.
FE

12)Rising interest rates and falling markets have pushed up the demand for FMPs – Fixed Maturity Plans, say distributors and fund analysts. FMPs, which are traditionally products for HNIs and institutional investors, have been seeing participation from the retail investors as well, they said.
BL

COMMODITIES
 
13)Oil rose by more than $2 on Thursday as unrest in Saudi Arabia, Bahrain and Libya heightened supply disruption concerns. Brent crude for May was up $2.69 to $113.29 a barrel at 1242 GMT.
BS

14)Both the precious metals, gold and silver, continued their losing streak for the third straight day today due to a
 weak global trend. While gold fell by Rs 50 to Rs 20,750 per 10 gm, silver declined by Rs 500 to Rs 52,000 a kg.
 In global markets, gold fell by 0.9 per cent to $1,386.65 an ounce and silver edged lower by 1.5 per cent to 33.70
 an ounce.
BS

15)Guargum’s March, April, May, June futures on NCDEX reached the four per cent upper circuit as the March contract would expire on Friday. Market booked profits when guargum touched Rs 9,000 a quintal bringing prices down, traders started to cover short positions which caused the contracts to hit the upper circuit.
BS
 
REAL ESTATE

16)Property sales registrations in Mumbai fell on an annual basis, for the seventh month in succession, as realty prices remained high in the country’s commercial capital.
BS

17)Shanta Sriram Constructions, a Hyderabad-based real estate company, plans to develop a satellite township and six multiplex-cum-mixed use commercial complexes and a hotel in the city, the latter with an investment of about Rs 500 crore.
BL
 
COMMUNICATIONS

18)GSM mobile operators added 14.7 million new mobile subscribers in February, taking the total tally to 555 mil-
 lion. Vodafone Essar was the top grosser with 3.5 million new users, followed by Bharti Airtel with 3.2 million. Idea Cellular was at the third spot with an addition of 2.5 million subscribers. The three operators are also the
 biggest gainers due to the introduction of Mobile Number Portability.
BL

19)Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL), the two government telecom companies, have a new problem, while facing the heat of intense competition and falling rates. The new facility to consumers to change their operator while keeping their telephone number is hitting both.
BS
 
INFORMATION TECHNOLOGY
 
20)HCL Infosystems on Thursday announced it has bagged a over Rs 300-crore order from Indian Air Force to deploy the Wideband CDMA-based portable wireless network covering many Air Force Stations across India.
BL
 
INTERNATIONAL
 
21)As Japan’s nuclear crisis intensified Wednesday, governments across Europe remained at odds over whether to scale back nuclear power programs or continue plans to expand, while China announced that it was suspending new plant approvals until it could strengthen safety standards.
ET

Listing of Equity Shares of Dhunseri Investments Ltd

NSE & BSE Circulars regarding Listing of Equity Shares of Dhunseri Investments Ltd, pursuant to Scheme of Arrangement are appended herewith for your ready reference and perusal please.

Symbol DHUNINV
Name of the Company Dhunseri Investments Limited
Series BE – Trade for Trade
Security Description Equity shares of Rs.10/- each allotted pursuant to scheme of arrangement
ISIN INE320L01011
Face Value Rs.10/-
Paid-up Value Rs.10/-
No. of securities 5855448
Distinctive number range 50001-5905448
Market lot 1
Pari Passu Yes
Lock-in Annexure I
Remarks Currently the securities shall be available for trading in Series ‘BE’ and subsequently be shifted to Series ‘EQ’ as per SEBI circular no. SEBI/Cir/ISD/1/2010 dated September 2, 2010

 

 The brief particulars of the scheme of arrangement are as mentioned below:

Pursuant to the Scheme, the Jaipur Packet Factory & Investment division of Dhunseri Tea & Industries Limited (DTIL) (Now known as Dhunseri Petrochem & Tea Ltd) has been transferred to and vested in DIL on a going concern basis and in consideration thereof, DIL has allotted 58,55,448  equity shares to the shareholders of the DTIL in the ratio of 1 (One) equity share of Rs.10/- each of DIL for every 2 (Two) equity shares of Rs.10/- each held in DTIL.

 Extract of Circular: 9.3 Compulsory Close-out of securities under Corporate Action:

 ‘No delivery’ is abolished in respect of all types of corporate actions for securities traded in the compulsory dematerialised mode. In case a company announces any corporate action for securities in compulsory dematerialised mode, the Clearing Corporation shall announce an ex-date and all cum transactions which cannot be auctioned on cum basis shall be compulsory closed out. All cases of short deliveries where the cum basis auction pay out which would otherwise have been after the book closure / record date shall be closed out as stipulated by SEBI vide Circular Ref No: SMD/Policy/Cir-08/2002 dated April 16, 2002. Accordingly, shortages shall be directly closed out at the highest price prevailing in the Exchange from the day of trading till the day of closing out or 10% above the official closing price on the auction day, whichever is higher, or as declared from time to time. The no–delivery period shall continue to be applicable in case of securities deliverable in physical form.

Today’s Levels (18-03-2011)

Today’s Levels
(Last Close : Sensex 18150 : Nifty Spot 5447)
Trade long if Sensex sustains above 18104 (Nifty 5435)
[Upside targets/resistances at 18233(5473)/18313(5497) or higher]
Trade short if Sensex fails to sustain above 18233 (Nifty 5473)
[Downside targets/supports at 18104(5435)/17936(5400) or lower]