Date: 15 March 2011
Thought for the day
“Most people who fail in their dreams fail not from lack of ability but from lack of commitment.”
1)Stressing that Indian atomic power plants were constantly upgraded to match current levels of safety requirements and were safe, scientists on Monday said that the events in Japan cannot slowdown the country’s nuclear energy programme in any way. Indian organisations had already announced they would revisit all safety aspects of nuclear plants in the country after the situation in Japan. Hindu
2)The Planning Commission will work out a long-term capital infusion roadmap for public sector banks, helping them meet the credit needs of the economy, expected to grow at over 9% in the medium term.
3)Softening food prices notwithstanding, the country’s headline inflation rate has risen to 8.31 per cent in February, from the previous month’s level of 8.23 per cent.
CORPORATE / INDUSTRY
4)JEFFREY Immelt, chairman and CEO of GE on Monday said the company will set up a manufacturing facility in India to make energy equipment and has earmarked $200 million for the purpose.
5)Vishal Retail has completed the sale of its retail and wholesale businesses to private equity firm TPG and Shriram Group, respectively, for a total cash consideration of Rs 70 crore. The debt-laden retailer revealed this in a filing to the Bombay Stock Exchange on Monday.
MONEY & BANKING
6)The rupee strengthened by about 18 paise tracking the general dollar weakness and the gains in the domestic equity market. The lower oil prices also helped the rupee, said dealers. The domestic currency opened at 45.20 and closed at 45.06, against Friday’s close of 45.24.
7)HDFC Bank, the second largest private one, has raised its minimum lending rate, or base rate, by 50 basis points and the benchmark prime lending rate (BPLR) by 75 basis points. The new base rate is 8.7 per cent and its BPLR has been revised to 17.25 per cent. This is the second time in less
than a month that it has increased its minimum lending rate. It had raised the base rate by 45 basis points in the last week of February.
8)Despite the high tax rates wiping out a large part of their gains, India is fast emerging as one of the most profitable markets for foreign banks post the global financial crisis. Compared to other emerging markets, accelerated growth in the domestic economy provided greater business opportunities to foreign banks here, resulting in higher profitability, analysts and bankers said.
9)Reliance Capital has agreed to sell a 26 per cent stake in its life insurance arm to Japan’s Nippon Life Insurance for Rs 3,062 crore. The deal, the largest foreign direct investment (FDI) in the country’s insurance sector, values Reliance Life at Rs 11,500 crore. BS
10)LED by Reliance Industries (RIL), which rose 2.6%, and Infosys which gained 1.5%, BSE benchmark index Sensex bounced back on Monday for the first time in three days, as crude oil prices came off. The Street shrugged off the worse-than-expected inflation figure for February, which
came in at a high 8.3%, although the data prompted some economists to wonder whether the central bank might consider a 50 basis points hike in key policy rates when it meets later this week. While Sensex rose 265 points closing the session at 18,439, the broader 50-share Nifty was up 86 points ending the day at 5,531.5. Most of the key benchmark indices in Asia Pacific recorded modest gains despite niggling worries about a major radiation leak in Japan in the wake of the ferocious earthquake and tsumani.
11)A massive selloff on the Tokyo Stock Exchange wiped out some 23.5 trillion yen ($287 billion) from the market’s value on Monday with investors dumping stocks as the country recoiled from a devastating earthquake and struggled to avert a nuclear disaster. The selloff triggered record volumes and slashed the market’s value to roughly 289 trillion yen.
12)PTC India Financial Services (PFS), the non-banking financial institution promoted by PTC India, has fixed a price band at Rs 26-28 a share for its initial public offering(IPO) to be offered through 100% book-building.
13)Delay on the part of CDSL Ventures to complete the ‘know-your-client’ process for mutual funds will derail the tax planning of many investors looking to save taxes by investing in equity linked savings scheme, or ELSS.
14)Shariah-compliant personal investment products are slated to flood the market as exchanges and mutual funds seek to tap Muslim investors who refrain from trading in stocks and commodities. While the MCX-owned National Spot Exchange Limited (NSEL) plans to market shariah-compliant investment products in a fortnight, SBI Mutual Fund and UTI Asset Management are looking at ways to launch such products in the next few months.
15)Birla Sun Life Asset Management Company Ltd (BSLAMC) has announced the launch of a five-year close-ended capital protection fund – Capital Protection Oriented Fund Series 5. The new fund offer will be open for subscription till March 25.
16)Gold gained for a second day in London as Japan’s strongest earthquake on record and violence in Libya boosted demand for an alternative investment. Immediate-delivery bullion rose $11.05, or 0.8 per cent, to $1,428.50 an ounce at 12:20 p.m. in London. BL
17)Crude oil fell to a two-week low in New York on speculation that the worst earthquake in Japan’s history will hurt growth and reduce fuel demand in the world’s third-largest economy. Crude oil for April delivery fell $1.49, or 1.5 per cent, to $99.67 a barrel at 9:14 a.m. on the New York Mercantile Exchange.
18)Silver regained its peak level by rising Rs 300 to Rs 54,600 a kg today on brisk buying for seasonal demand, amid a firm global trend. Gold also surged Rs 115 to Rs 21,310.10 gms. In line with a general firming trend, gold of 99.9 and 99.5 per cent purity shot up by Rs 115 each to Rs 21,310 and Rs 21,190 per 10 gm, respectively.
19)Robust demand for turmeric with higher curcumin content is likely to support Indian turmeric prices despite higher production. Turmeric prices are ruling firm and have not eased in the current crop season despite production reported to be higher by 40-50% when compared with the previous year.
BUSINESS PROCESS OUTSOURCING
20)BPO firm HOV Services and US-based SourceCorp, a portfolio company of PE Apollo Management, have agreed to merge to form a combined entity, SCH Services.
21)Your online contributions to support tsunami-hit victims in Japan could go into the coffers of scamsters if you are not careful. A torrent of scam solicitations for fake charities has flood the World Wide Web ever since an earthquake stuck Japan last Friday. Cyber security companies say that
hundreds of charity scam sites, which generally use desperate messages in ungrammatical English, have mushroomed after the calamity.
22)Global IT giant HP is fighting it out with domestic IT services companies such as Infosys Technologies, Tata Consultancy Services and Wipro for a Department of Post contract.
23)The Bank of Japan (BoJ) poured a record amount of cash into the financial system and doubled the size of its asset purchase plan to shield the economy from the effects of the nation’s strongest earthquake on record. The central bank pumped Y15 trillion ($183 billion) into money markets today to assure financial stability amid a plunge in stocks and surge in credit risk.
24)Berkshire Hathaway announced on Monday that it would buy Lubrizol for $9 billion in cash in one of the largest deals ever for Warren E. Buffett. Berkshire will pay $135 a share for LUbrizol, a speciality chemical maker based in Wickliffe, Ohio.