IPO: Multi Commodity Exchange of India Limited (MCX)

The Offer Details are as follows:

Issue Opens on                                 :               Wednesday, February 22, 2012

Issue Closes on                                 :               Friday, February 24, 2012

Price Band                                          :               Rs 860- Rs1032

Bid Lot Size                                         :               6 Equity shares

Issue Size                                            :               6,427,378 Equity Shares

Employee Reservation Portion :               250,000 Equity Shares

Net Issue                                             :               6,177,378 Equity Shares

QIBs portion 50% of Net Offer   :               3,088,689 Equity Shares of Rs. 10 each

NIBs portion 15% of Net Offer   :               926,607 Equity Shares of Rs. 10 each

RIBs portion 35% of Net Offer    :               2,162,082 Equity Shares of Rs. 10 each

BRLM                                                    :               Edelweiss Financial Services Ltd.

Listing on                                            :               BSE

Registrar to the Issue                     :               Karvy Computershare Private Ltd.

IPO Grading                                        :               “IPO Grade 5/5” by CRISIL Limited

 

About MCX:

Multi Commodity Exchange of India Limited (MCX) is a leading commodities exchange in India based on value of commodity futures contracts traded. MCX offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, energy, weather and a number of agri-commodities on its platform. The Exchange is the world’s largest exchange in Silver, the second largest in Gold, Copper and Natural Gas and the third largest in Crude Oil futures, with respect to the number of futures contracts traded.

 

Markets Closed on 20-02-2012

Indian Markets BSE, NSE and MCX will remain closed on 20-02-2012 on account of public holiday for Mahashivratri.

For complete list of holidays in 2012, visit Holiday List 2012

 

NSE CD & MCXSX Circular regarding Trading Holiday on 16.02.2012

CURRENCY DERIVATIVE SEGMENT

Additional Trading Holiday on February 16, 2012

S.No Date Day Description
1. 16-Feb-2012 Thursday General Election of Brihan Mumbai Mahanagar Palika

REVISED SETT SCHEDULE

Trade Date

Revised Daily Settlement Date

15-Feb-12

17-Feb-12

Client Margin Reporting:

Trade date

Cut-off date for reporting

08-Feb-12

15-Feb-12

09-Feb-12

17-Feb-12

10-Feb-12

21-Feb-12

13-Feb-12

22-Feb-12

14-Feb-12

23-Feb-12

15-Feb-12

24-Feb-12

17-Feb-12

27-Feb-12

Headlines (22-10-2009)

Date: 22 October 2009

 Thought for the day

“No iron chain, or outward force of any kind, can ever compel the soul of a person to believe or to disbelieve.”

-Thomas Carlyle

GENERAL

1)Counting of votes in Assembly elections in Maharashtra, Haryana and Arunachal Pradesh will be taken up on Thursday and the 10-day long suspense over who will form the next government is expected to be over in a few hours later.

Indian Express

ECONOMY

2)INDIA’S economy is expected to grow at 6.5% in the current fiscal, an improvement over the earlier official estimate of 6% plus growth, as robust industrial growth in the second half of the current fiscal is expected to more than make up for the monsoon-hit farm sector, according to an assessment of the economy released on Tuesday by the country’s premier thinktank – the Prime Minister’s Economic Advisory Council(EAC).

ET

3)Interest rates are likely to remain soft as FM Pranab Mukherjee on Wednesday ruled out any immediate plans to withdraw the fiscal stimulus. Prime Minister Economic Advisory Council(PMEAC) chairman C Rangarajan also indicated that the current easy monetary policy will continue till March 2010.

TOI

4)In a first government-industry synergy of efforts, a high-level trade delegation is making a two-phase visit to Europe, covering five major countries in a move to attract $6 billion of foreign direct investment(FDI) by 2015 into the country’s textile sector.

BL

CORPORATE / INDUSTRY

5)ESS Dee Aluminium, which recently acquired India Foils, is close to making its first major global acquisition in Europe. The deal is likely to be sealed within the next one or two months. As a precursor to the deal, Ess Dee is preparing to get listed on the London Stock Exchange.

ET

6)Pharma group Ind-Swift on Wednesday said it is looking for a string of acquisitions worth Rs 350 crore in Europe, the West Asia and Latin America to strengthen marketing and distribution network in the regions. The group is also looking at acquiring manufacturing assets within India in the range of RS 10-20 crore to overcome capacity constraints.

FE

7)Areva T&D India has been awarded a Rs 900-crore EPC (engineering, procurement and construction) contract by the Maharashtra State Electricity Transmission Company for turnkey design and construction of 36 sub-stations with 132 kv AND 220 kv configurations.

BL

MONEY & BANKING

8)THE rupee fell to its lowest in more than a week on Wednesday, as a fall in local share prices turned sentiment cautious about the direction of fund flows and some banks bought dollars cheaper to arbitrage offshore. The partially convertible rupee ended at 46.485/495 per dollar, off an early low of 46.52, its weakest since October 12 and 0.8% below its Tuesday’s close of 46.11/12.

ET

9)Private sector lender, Yes Bank has reported a net profit of Rs 111.71 crore for the second quarter ended September 30,2009 as against Rs 63.6 crore during the corresponding period last year, showing a growth of 75.6%.

FE

MARKETS

10)Extending the losses for the second day in succession, the Sensex on Wednesday nosedived by over 200 points on profit-selling in banking and auto segments amid weak Asian cues. The Sensex remained weak for most part of the day and closed lower by 213.84 points at 17,009.17. Similarly, National Stock Exchange index Nifty dropped by 50.85 points to 5,063.60. Marketmen said a weak trend in the Asian region influenced trading sentiment.

ET

11)As the markets and the economy have started booming again, foreign investors are back in business. Nowadays, their attention is primarily centering around the Indian exchanges such as the National Stock Exchange(NSE), National Commodity & Derivatives Exchange Ltd(NCDEX) and Multi Commodity Exchange Ltd(MCX).

FE

MUTUAL FUNDS

12)The domestic mutual fund industry has appreciated the Security and Exchange Board of India’s(Sebi’s) move on clearing and settlement of trades in corporate bonds through clearing corporations. Fund houses believe the step will bring transparency in the bond market and enhance liquidity.

BS

CORPORATE SCORE

13)Riding on strong sales during the current festive season coupled with new launches, the country’s largest two-wheeler manufacturer Hero Honda on Wednesday posted its highest-ever net profit, up 95% at Rs 597.14 crore for the quarter ending September 30 against the same period last year. This is the second consecutive quarter when the companies’ sales have crossed the million unit mark. During the quarter, the company’s total revenues recorded a growth of 26.8% at Rs 4059.44 crore against Rs 3202.05 crore in the corresponding period last fiscal.

FE

14)INFRASTRUCTURE company Jaiprakash Associates(JAL) on Wednesday reported a more than four-times jump in net profit to Rs 870 crore for the September quarter on treasury share sale, even as it announced that it would issue one bonus equity share for every two shares held in the company. The company grossed a profit of Rs 942 crore on sale of treasury shares which helped the company clock a net profit of Rs 870 crore, as against Rs 203 crore in the year-ago quarter.

ET

COMMODITIES

15)A JUMP in traded values of agri products, energy and base metals helped commodity exchanges in India record a 30% year-on-year growth in turnover at Rs 33.63 lakh crore in the first-half of the fiscal, latest data from market regulator Forward Markets Commission (FMC) on 21 commexes, including three national level bourses, show. The increase in agri traded values, by 61% to Rs 5.26 lakh crore, has enabled exchanges such as National Commodity & Derivatives Ex- change(NCDEX) and Ahmedabad-based National Multi Commodity Exchange(NMCE) increase their average daily turnover. NCDEX’s daily turnover has gone up from Rs 2048 crore in the first half of FY09 to Rs 2621 crore in H1 FY10, while NMCE has witnessed spectacular 518% jump at Rs 1,280.5 crore over the same period. Exchange officials attributed the jump in agri volumes to the re- listing of four commodities – potato, soyaoil, rubber and chana.

ET

16)High prices seem not a deterent for customers when it comes to buying gold, particularly on auspicious occasion such as Diwali and Dhanteras. Despite high prices, gold sales across the country during the Diwali week ended October 18 were marginally higher by six per cent at 56 tonnes against 53 tonnes during the same period a year ago, according to the World Gold Council, an industry association of the world’s leading gold mining companies.

BL

17)The country’s largest commodity exchange, MCX, on Wednesday launched futures contracts in four farm commodities – wheat, chana,guarseed and turmeric. The turmeric contract is available for November delivery, chana for January 2010, guarseed and wheat for February 2010 delivery, the exchange said in a circular.

FE

18)Gold prices firmed up further on the bullion market in Mumbai on renewed stockists demand. Standard gold(99.5 purity) rose by Rs 30 for 10 grams to Rs 15,920. Pure gold(99.9 purity) increased Rs 55 for 10 grams to Rs 16,000. Silver ready(.999 fineness) dropped by Rs 190 a kg to Rs 27,440.

BL

COMMUNICATIONS

19)With an estimated Rs 30,000 crore of revenue at stake to bridge a yawning fiscal deficit, Finance Minister Pranab Mukherjee has categorically told Communications Minister A Raja that auctions for licences for third-generation or 3G telecom services cannot spill over to the next calendar year under any circumstances.

BS

INFORMATION TECHNOLOGY

20)IT services provider Mahindra Satyam, formerly Satyam Computer, has secured contracts valued at Arab Emirates Dirhams 30 million (Rs 37.59 crore) in the Middle East and North Africa(MENA) markets in the second quarter of FY09-10. It expects to double its business in this region in the next 18-24 months, leveraging on the growing demand within the government, banking, telecom and real estate sectors, the company said on Wednesday.

ET

21)Software giant Microsoft will formerly launch its much touted operating system(OS) – Windows 7 – in India today. The company is on a good wicket in the country, say analysts, with a nearly 90 per cent market share comprising XP(primarily) and Vista users.

BS

INTERNATIONAL

22)Crude oil futures rose after a US Government report showed a bigger-than-forecast decline in supplies of gasoline. Crude oil for December delivery rose 52 cents, or 0.7 per cent, to $79.64 a barrel at 10:37 a.m. on the New York Mercantile Exchange.

BL

23)Yahoo Inc beat Wall Street’s profit and sales expectations as spending by advertisers showed signs of life in the third quater and as months of cost-cutting and restructuring boosted the Internet company’s bottom line. Net earnings was $186 million, or 13 cents a share, in the third quarter, up from $54.3 million, or 4 cents per share, in the year-earlier quarter.

FE

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
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

Headlines (17 Aug 2009)

Date: 17 August 2009

Thought for the day

“Opportunities are like sunrises – if you wait too long, you miss them.”

–William Arthur Ward

GENERAL

1)INDIA has completed the design of Chandrayaan-2, its next mission to the moon. This time it is in collaboration with Russia and will have a lander and rover that can collect samples of the lunar soil and analyse them and send the data back.

Indian Express

ECONOMY

2)DESPITE a 25% shortfall of the south-west monsoon, the government hopes that water from important reservoirs in the western and southern parts of India could be used to improve production and productivity of summer(kharif) crop such as pulses, oilseeds and to a certain extent paddy.

ET

3)With European and Asian countries like France, Germany and Hong Kong pulling themselves out of the downward spiral, Indian exporters can expect a reasonable growth by December, says a Ficci survey. In a survey conducted by Federation of Indian Chamber of Commerce and Industry, majority of respondents said exports are expected to be in positive terrain by December this year.

FE

CORPORATE / INDUSTRY

4)The auto component industry, which has just started seeing revival after a lull in the business, relies on the retail market of auto spare parts for better growth. “The impact of slowdown is much less in spare parts business. The size of the Indian auto spare parts market is estimated to be around Rs 36,000 crore and is growing,” said Mr R Bhurat, Chief Executive, Mahindra Spares Business.

BL

MONEY & BANKING

5)The rupee is expected to touch 44 to a US dollar by March 2010, a rise of over 8% from the current 48, says a research report from Axis Bank. The report makes the conclusion based on the consistent upswing in foreign investment inflow into the stock markets and “a high likelihood of surplus in current account, against a $30 billion deficit in 2008-09”.

FE

6)Indians poured Rs 7,28,078 crore into the banking system by way of deposits in the year ended July 31, 2009, 27 per cent more than in the preceding year. State Bank of India alone raked in 28 percent of this money, with the public sector banks garnering the bulk of new inflows.

BL

7)The country’s third largest public sector lender, Bank of Baroda, on Sunday said that its life insurance venture with the UK-based Legal and General Group is expected to commence operations in the next seven months.

FE

MARKETS

8)Indian equity indices which witnessed a huge upward rally last week following strong global cues, is likely to take cues from the international markets in the coming days. However with US markets closing in red last week might have some impact on the domestic markets when it opens on Monday. In the last one week, 30-share Sensex of BSE added 1.66% or 251.39 points, while the broader S&P CNX Nifty of National Stock Exchange(NSE) gained by 2.20% or 98.65 points. On Friday, last trading day of previous week, Sensex closed at 15,411.63 points down by 106.86 points or 0.69%. The Nifty ended at 4,580.05 points losing 24.95 points or 0.54%. Dealers in the markets say that, domestic markets are likely to remain in the upbeat mood as sentiment across the globe remains positive after the US Federal Reserve said the world’s largest economy US may be emerging from a recession.

FE

9)FIIs have made a net investment of just Rs 264 crore in the domestic stock markets in August. Analysis of FII activities in the Indian stock markets shows that overseas investors are, so far in August, a net purchaser of domestic stocks worth Rs 264.6 crore. FIIs made a gross purchase of shares worth Rs 22,821.2 crore, while they sold equities valued at Rs 22,556.6 crore, resulting in a net investment of just Rs 264.6 crore, according to the data available with market regulator Securities and Exchange Board of India(Sebi). However, it seems that during the period under review, the Indian debt market became a preferred choice for overseas investors as the segment attracted a net investment of nearly Rs 2,200 crore.

ET

10)In a step towards disinvestment, Coal India has got approval from the Coal Ministry to reduce the face value of its shares to Rs 10 from Rs 1,000, a move that would increase the number of the company’s shares to 631.6 crore.

BL

11)THE country’s biggest rating agency and Standard & Poor’s arm Crisil is stepping into uncharted territory to grade listed stocks an experiment that will be the first of its kind in the world and is sure to have its own share of controversies. Retail investors, many of whom are returning to the market after last year’ turmoil, can check the grading of a stock to find out how fundamentally sound the company is.

ET

IPO

12)THE government has fixed a price of Rs 36 a share for the allotment of shares in the initial public offer of NHPC, thus raising Rs 6,048 crore, of which one-third would go to the Centre as disinvestment proceeds and the rest would remain with the hydro power utility PSU. According to power ministry sources, the Group of Ministers has decided to allot shares at the upper limit of the price band of Rs 30-36 a share.

ET

MUTUAL FUNDS

13)THANKS to improved market sentiment and funding-raising activities of realty firms, the country’s mutual funds have turned bullish on the real estate sector, with their investment in property stocks soaring to Rs 1,421 crore till July. The value of realty stocks held by fund houses stood at just Rs 171 crore in December, when the economy was experiencing the tremors of the global financial turmoil. Going by the data with mutual fund tracking firm value research, the money parked by these entities in realty scrips is Rs 1,421 crore till July, more than an eight-fold jump as compared to the investment in December last year.

ET

14)HSBC Asset Management Company is planning schemes that will invest in overseas markets. “Despite the recession, some markets out- side India(such as China) are doing well. We see specific opportunities there which might benefit the investors”, Mr Vikramaditya, Chief Executive Officer of HSBC AMC India, told Business Line.

BL

COMMODITIES

15)Gold prices are likely to surge further this week to rule over Rs 15,000 per 10 gm level amidst a weakening dollar and rising demand ahead of the festival season. On Friday, October gold on Multi Commodity Exchange ruled at Rs 14,965 per 10 gm, touching a high of Rs 15,011 per grms. While in the international market the yellow metal ruled at 958 dollars an ounce (28.34 grams). Analysts say gold is attracting investors as they are expecting the prices to rise further.

FE

REAL ESTATE

16)With end-users and investors returning to the real estate market and demand for apartments in the metros picking up bit by bit, experts believe the price of premium residential apartments will rise by 15% to 25% during Diwali this year. They say premium apartments in Mumbai, including South Mumbai, Bandra and Worli, and those in Delhi, including Connaught Place and East of Kailash, which were available at Rs 70,000 to Rs 80,000 per sq ft during January to March this year(Q4 of 2008-09) will be sold at Rs 1 lakh to Rs 1.20 lakh sq ft during Diwali.

FE

17)Builders are not the only ones climbing onto the ‘affordable housing’ bandwagon. With premium housing and commercial realty market still in near comatose, the affordable housing projects are now catching the eye of dedicated real estate funds and private equity(PE) firms which are chasing opportunities in this emerging space.

BL

COMMUNICATIONS

18)DATACOM Solutions has signed an infrastructure sharing deal with Tata Teleservices(TTSL) that will allow it to lease bandwidth as well as towers across the country from the Tata group firm, executives familiar with the development said.

ET

BUSINESS PROCESS OUTSOURCING

19)The Indian business process outsourcing(BPO) industry is following in the footsteps of information technology service firms, in- creasing its global footprint as it eyes bigger and more complex work from clients. The demand for global solutions is pushing Indian BPOs to grow aggressively into global centres, said a senior executive. For instance, in the past 18 months, WNS has expanded its presence in the Philippines, Romania, and now Latin America.

BS

INFORMATION TECHNOLOGY

20)THE prolonged slump in global technology services spending is clearly turning out to be more like a boring five-day test match cricket than a T20 encounter. While the greenshots hold out hope for changes in the macro environment, it’s yet to translate into big deals the Indian IT players had just about started getting used to. That was a good 12-18 months back. Since those good old days of 24% growth a year, technology services export growth has dived to 4-7%. Despite the setback, the smarter companies haven’t buried their heads in the sand, like the proverbial Ostrich. They are working overtime, identifying new niches, new markets, creating new systems to get the bucks in this tough environment and prepare for better times.

ET

INTERNATIONAL

21)A SUCCESSFUL Doha round trade deal could boost the global economy by $300-700 billion a year, a study by the Peterson Institute for International Economics said. The figures that the Washinton-based institute calculates are similar in size to stimulus packages deployed by the biggest countries to tackle the economic crisis, and underline how much is at stake in the long-running talks.

ET

22)VOLKSWAGEN’S triumphant bid to take over luxury German carmaker Porsche marks the end of a bitter family power struggle and the start of a drive to become the world’s top auto manufacturer. “VW and Porsche are entering a new era – the company has the means to become number one,” pipping Japan’s Toyota by 2018, chief executive Martin Winterkorn said Friday at company head- quarters in Wolfsburg, northern Germany.

ET

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd http://www.karvy.com
http://www.khojhyderabad.com
http://www.indiacorporateadvisor.com
http://www.karvycomtrade.com (Commodities)
KARVY Global Services Ltd http://www.KARVYGlobal.com
KARVY Realty (India) Limited http://www.karvyrealty.com
Economic Times http://www.economictimes.com
The Financial Express http://www.financialexpress.com
Business Line http://www.businessline.in
Business Standard http://www.business-standard.com
The Times of India http://www.timesofindia.com
The Hindu http://www.hindu.com
Deccan Chronicle http://www.deccan.com
The New Indian Express http://www.newindpress.com

Headlines (07 July 2009)

Date: 07 July 2009

Thought for the day

“The quality of your ideas will be in direct proportion to the quantity of ideas you generate.”

–Brian Tracy

GENERAL

1)Taking off from where he left in his interim budgetary exercise for 2009-10, Finance Minister Pranab Mukherjee on Monday sought to inject an adequate dose of sops for the middle class and blend it with a massive fiscal stimulus and rural spending programme to spur the economic growth on to a higher trajectory. Presenting the UPA government’s full budget for the current fiscal in the Lok Sabha after the elections, Mr Mukherjee chose to please the salaried middle class, farmers and others in rural areas by providing incentives – even at the expense of revenue and a consequent higher fiscal deficit at 6.8 per cent of the GDP – as a trade-off to combat the slowdown in the wake of the global financial crisis.

Hindu 

INCOME TAX

2)THE 2009-10 Budget has brought smiles, especially to people in the higher income strata. Finance Minister Pranab today raised the basic exemption limits for all income groups. For men and women, the basic exemption limit was hiked by Rs 10,000. For men, the hike by Rs 1.5 lakh to Rs 1.6 lakh. For women, the rise was from Rs 1.8 lakh to 1.9 lakh. For senior citizens, the limit was increased from Rs 2.25 lakh to Rs 2.4 lakh, a rise of Rs 15,000.

BS

ECONOMY

3)Though Finance Minister Pranab Mukherjee waxed eloquent on the need for more retail shareholding in public sector undertakings, the budget has provided for only Rs 1,120 crore from disinvestment in 2009-10. The Economic Survey for 2008-09, tabled in Lok Sabha late last week by Mukherjee, had talked of raising up to Rs 25,000 crore every year from disinvestment.

BS

4)Hailing the Budget 2009-10 as “growth oriented”, the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, today said there would be no need for another stimulus in the current fiscal. “They (corporate) should be happy with removal of Fringe Benefit Tax (FBT). I don’t think that there is need for more stimulus in the current year,” he told reporters in New Delhi after the presentation of the Budget by the Finance Minister, Mr Pranab Mukherjee.

BL

CORPORATE / INDUSTRY

6)LEADING private sector companies like Reliance Communications, Great Eastern Shipping, Sun Pharma, Bharti Airtel, Suzlon Energy and HCL Technologies may see their tax liabilities go up this year, though the burden could be lower in subsequent years. So would some their IT peers. Finance minister Pranab Mukherjee has proposed a five percentage point hike in the minimum alternate tax(MAT) paid on book profits, taking the effective MAT rate to around 17% from 11%.

ET

7)PHARMACEUTICAL Companies heaved a sigh of relief as the finance minister decided to keep excise duty on drugs, pharmaceuticals and medical equipment unchanged at 4 per cent, while raising it to 8 per cent for many other items.

BS

8)Automotive players who were looking forward to some relief from falling demand for cars, utility vehicles were disappointed today when Finance Minister Pranab Mukherjee made no announcement that would drive the customers back to the showrooms.

BS

MONEY / BANKING

9)The rupee tumbled in tandem with a plunge in stocks and ended 65 paise weaker at a nearly two-week low of 48.54/56 against the US currency on fairly good dollar demand. Fears about capital outflows from equity markets after the Union Budget was presented weighed on rupee sentiment. It had closed at 47.89/91 a dollar on Friday.

BL

INSURANCE

 10)The Budget for 2009-10 did not go down well with the insurance industry, which expected tax concessions on several schemes and a roadmap for raising the foreign direct investment cap to 49%.

FE

11)NON-LIFE INSURANCE Companies will lose a big chunk of their investment income to the taxman. The decision could put an end to the rate war among non-life companies. Historically, state-owned companies
 did not pay tax on investment gains as these were seen core to their operations. But recently, it became a grey area after the I-T department asked some companies to pay tax on investment income.

ET

PENSION

12)TO MAKE the New Pension Scheme more lucrative for both investors and fund houses, the finance minister today announced that the income of the NPS Trust would be exempted from income and dividend distri-
 bution tax(DDT). Also, there will be no securities transaction tax (STT) on purchase and sale of equities and derivatives instruments.

BS

MARKETS

 13)BANKING, REALTY, AND metal shares crashed as key indices fell 6%, the sharpest on a budget day. Lack of a selloff schedule and robust map for FDI in insurance disappointed investors.  The Sensex fell 869.6 points to close at 14,043.4 after touching 13,959.4. The Nifty ended at 4,165.7, down 258.55 points. Four stocks fell for every one that rose on BSE.

ET

IPO

14)State-owned Oil India Ltd and National Hydroelectric Power Corporation (NHPC) will tap the capital market with their initial public offering(IPOs) in August/September this fiscal. This was stated by the Finance Secretary, Mr Ashok Chawla, at a post-Budget press conference today.

BL

MUTUAL FUNDS

 15)Though the Budget did not contain anything that directly pertains to mutual funds, the increase in disposable income in the hands of investors is likely to pave the way for increased investments in mutual funds in the long term, said fund managers. The thrust towards infrastructure is also likely to benefit certain theme-based funds, they said.

BL

PERMANENT ACCOUNT NUMBER

16)IF YOU Don’t have a Permanent Account Number (PAN), your tax deducted at source(TDS) could be higher. The penal rate will be a minimum 20%. The proposed penal rate is seen as an attempt by the government to gradually make PAN mandatory for all transactions, and ensure that more people come under the TDS net.

ET

SERVICE TAX

 17)SERVICE Providers have a reason to cheer, with the finance minister Pranab Mukherjee keeping the service tax rate unchanged at 10%. Any increase in rates could have affected consumption due to increased cost. The move to keep the rate unchanged is in line with the government’s plan to continue with the stimulus to ensure a stable recovery.

ET

COMMODITIES

18)In a bid to expand commodity futures markets that has been reeling under the impact the repeated government interventions, Budget 2009-10 abolished the Commodity Transaction Tax(CTT) proposed in the previous budget, but stopped short of making any announcement on re-starting futures trade in many banned commodities or having a common regulator for all financial markets, including the commodities markets, under the Securities and Exchange Board of India as envisaged in the latest Economic Survey.

FE

19)In a move that could give a fillip to recycling of gold and push up local prices hurting the gems & jewellery industry, the Budget 2009-10 Monday proposed to increase the customes duty on gold bars by Rs 100 per 10 gram and that on other forms of gold by Rs 250 per 10 grams.

FE

20)Pepper futures on Monday declined marginally for want of buying support and in the absence of any incentives for boosting export of the commodity in the Union Budget 2009-10 when the Indian parity remained out-priced in the world market.

REAL ESTATE

21)Following the announcement by the finance minister to raise Rs 1,00,000 crore for the development of the infrastructure sector by Infrastructure Finance Company(IIFCL) in Budget 2009-10,construction players feel that this is an indirect boom to the real estate sector as taking out finances will help free up capital in infrastructure. Meanwhile, top real estate developers are unhappy as they expected this year’s Budget to be aggressive and investment for the low and middle-income housing in metros and rural housing which  was not addressed.

FE

INFORMATION TECHNOLOGY

 22)For the $50 billion Indian IT the formal extension of the 10-year tax holiday for the sector by one more year is a major relief. This is the second consecutive one year extension for the Software Technology Park of India(STPI) scheme under Section 10A of the Income Tax Act.

FE

23)Setting the stage for implementation of the ambitious National ID card project, the Finance Minister, Mr Pranab Mukherjee, said on Monday that the first set of unique identity numbers would be rolled out in 12-18 months. A provision of Rs 120 crore is proposed for the project.

BL

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

 Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
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

 

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Headlines (06 July 2009)

Date: 06 July 2009

Thought for the day

“The most successful businessman is the man who holds onto the old just as long as it is good and grabs the new just as soon as it is better.”

-Robert P Vanderpoel

GENERAL

1)Increased spending on infrastructure to combat the ongoing slowdown and spur economic growth, a road map for public sector equity disinvestment and financial sector reforms over the next five years, assured supply of cereals at higher subsidised rates to BPL households, specific incentives for the export-hit sectors and a marginal revamp of the taxation regime along with a moderate hike in the tax exemption limit for the salaried class are expected to be some of the main features of the Union budget for 2009-10.

ECONOMY

2)The Budget to be presented by finance minister Pranab Mukherjee is likely to propose substantially higher Plan spending of Rs 40,000 crore, bringing the total Central government support to the Plan spending of the Centre and the states to Rs 3,25,000 crore, or 5.45% of the forecast GDP of 2009-10. This boost to Plan spending would represent the Centre’s commitment to both sustaining the fiscal stimulus and the ruling coalition’s political commitment to inclusive growth.

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CORPORATE / INDUSTRY

3)Chennai Petroleum Corporation Ltd, (CPCL),a subsidiary of Indian Oil Corporation (IOC), is planning to invest over Rs 7,000 crore in the next five years on its expansion plan and on connectivity projects. It is also planning to acquire 400 acres at the outskirts of Chennai as part of its refinery expansion.

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MONEY / BANKING

4)Indian Overseas Bank expects to grow by 20 per cent during the current financial year to surpass a total business volume of Rs 2 lakh crore, provided the monsoons are on time and are adequate. To a shareholders’ query on the bank’s growth expectations in 2009-10, during the 9th Annual General Meeting, Mr S.A. Bhat, Chairman and Managing Director, said that the bank would be growing by 20 per cent both in deposits and advances. However, if the monsoons are below the expected level, which would affect the economy’s growth, the bank’s business growth may also be impacted, he said.

INSURANCE

5)THE global financial crisis has worked in favour of the General Insurance Corporation (GIC Re), India’s national reinsurance company. With the capacities of global reinsurance giants shrinking, the national reinsurers has been writing huge blocks of reinsurance from overseas and increasing its share of international business.

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6)UK-based insurance firm Aviva said on Sunday it is keen on raising FDI to 49% in the Indian venture subject to policy liberation. Aviva India is 74:26 joint venture with FMCG major Dabur and UK-based Aviva.

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MARKETS

7)STOCK market players are waiting for cues from the Union Budget on Monday, which will be seen as the government’s blueprint for reviving growth in the backdrop of an ailing global economy. Among other things, investors expect finance minister Pranab Mukherjee to announce a roadmap for selling stakes in state-owned companies. Traders have cut down their positions in the run-up to the budget, while institutional investors too have been lying low over the last one week. On the advice of their brokers, retail investors have been avoiding directional bets on the market. The more experienced traders have been using trading combinations in equity options(long on one stock and short on another) so as to minimise losses in the
 event of a big move. On Friday, the BSE’s 30-share Sensex closed at 14,913, up 254.56 points or 1.7% over the previous close, and National Stock Exchange’s 50-share Nifty closed at 4424, up 75.40 points, over the previous close. Market watchers say there has been no massive build-up of long positions(in the futures segment), and hence there is unlikely to be a sharp fall even if the Budget disappoints.

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8)The country’s top-10 firms added Rs 32,000 crore to their market capitalistion last week, with public sector oil firm Oil and Natural Gas Corp(ONGC) contributing the major chunk. ONGC added Rs 20,052 crore to its market-cap, taking the total valuation to Rs 2,42,687 crore during the week ending July 3. Shares of the company surged 9% to settle at Rs 1,134.65 on the BSE at the end of Friday’s trade.

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9)DOMESTIC institutional investors seem to be prepared for any money-making opportunity that the budget may open up on Monday. Over the last few weeks, investment managers have realigned their portfolios, increasing weightage to sectors that could receive budgetary sops or benefit from increased spending.

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10)Financial services major India Infoline Group has entered into a strategic tie-up with Interactive Brokers LLC of the US,with a view to provide its clients direct access to 80 global exchanges spanning 18 countries. “Interactive is one of the largest broker dealers in the US. We were looking for a strong partner with a platform through which our clients could access global exchanges and interactive fitted our bill perfectly,” India Infoline private wealth CEO Karan Bhagat said.

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MUTUAL FUNDS

11)Crisil has assigned AAA(so) rating to Birla Sun Life Mutual Fund’s Capital Protection Oriented Fund Series 1,2 and 3, according to a press release from the rating agency. Birla
 Sun Life Asset Management Company Ltd(BSLAMCL) is the investment manager for the mutual fund company. The rating indicates the highest degree of certainty regarding timely pay-
 ment of the face value of the units on maturity, the release states.

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COMMODITIES

12)CRUDE oil futures on the Multi Commodity Exchange continued to rule weak on the week ended on Friday on continued selling pressure in the domestic market following weak sentiment in the global markets as sharp fall in non-farm payrolls in June raised concerns and boosted rally in dollar. The US labor department said employers cut 4.67 lakh jobs in the last week of June. Similarly, silver futures fell further last week on lack of follow-up support from market players and prices fell nearly 5%. Gold futures remained steady on Friday on stray buying
 support.

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13)The week witnessed a sharp decline in the pepper futures market on bearish operations and entry of imported pepper in the domestic market. The current scenario is likely to continue till the new crop position of Indonesia becomes known.

REAL ESTATE

14)FOLLOWING new rate cuts in a highly competitive home loan market,real estate developers feel time has finally arrived to offload their projects, transform residentail property demand into actual purchase decision by home seekers, generate capital for the new projects and thereby keep the market fluid.

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15)Mumbai-based realty firm Lodha group is in talks with three private equity players to raise $180 million (around Rs 850 crore) for its three projects, a senior company executive said. “We are in active negotiations with private equity funds for three projects and are looking at an average deal size of $60 million for each project,” Lodha group director Abhisheck Lodha said, adding any of these potential deals may take more than a month to be closed.

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COMMUNICATIONS

16)WHILE operators are getting ready for the upcoming 3G auctions, international and Indian handset manufacturers are planning to increase their 3G-enabled phone offerings in India, or to tie up with existing 3G providers. 3G is a faster and enhanced mobile communications technology which provides broadband like experience on mobile phones and enables users to experience the power of internet on the move.

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BUSINESS PROCESS OUTSOURCING

17)HCL BPO, the business process outsourcing arm(BPO) of HCL Technologies, the NEW-Delhi based information technology services provider, shortly plans to offer remote technical support services to the global small office-home office(Soho) market, whose current size is estimated anywhere between Rs 960 and Rs 1,440 crore.

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INFORMATION TECHNOLOGY

18)REVENUES of major IT firms are expected to be hit by up to 7% in rupee terms in the April-June period as appreciation in the rupee against the dollar during the quarter would impact negatively the margins compared to the previous quarter, says a report.

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19)A MAJORITY of the large and medium size IT entities in the US expect better business performance in the second half of 2009, while many plan to hire staff in the coming months. About 61% of the large businesses and 60% of medium enterprises surveyed anticipate better company performance in the second half of this year says a report by technology solution provider CDW Corporation.

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FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

Karvy Consultants Ltd www.karvy.com
 www.khojhyderabad.com
 www.indiacorporateadvisor.com
 www.karvycomtrade.com (Commodities)
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