Market Buzz: 15/12/2011

Market Buzz

  • Inflation fell to 9.11% in November, its lowest level in a year, from 9.73% in October, raising expectations of RBI merely signaling a shift in its policy stance.
  • DLF is close to signing a deal with private equity major Blackstone, as the country’s largest real estate developer by market capitalisation is planning to offload its entire stake in the SEZ in Pune.
  • IOC is in talks with L&T-Tata Steel-owned Dhamra Port Co Ltd for setting up 5 million tons a year LNG terminal in Orissa.
  • TRAI is in the process of taking legal action against Airtel and Vodafone for violating the mobile number portability guidelines.
  • Rajesh Exports plans to raise Rs 6500 crore over the next threefour years to expand into retail jewellery.
  • Enforcement Directorate questioned Sanjay Chandra, Unitech MD and an accused in the 2G spectrum allocation scam recently over investments made in a tax haven abroad. (BS)
  • State-run oil marketing companies appear set to raise petrol price by 50-60 paise from December 16 as a sinking rupee and the fuel’s rising price in the international bulk market dent their bottom lines. (TOI)
  • Crude oil fell from a one-week high in New York as OPEC agreed to raise its production ceiling, moving the group’s supply target nearer to current output levels.
  • Federal Reserve Chairman Ben S. Bernanke told Republican senators the Fed plans no additional aid to European banks amid the region’s sovereign debt crisis.
  • Greek PM warns economy to shrink by more than 5.5% in 2011.

Pivot Point 08-12-2009

08/12/2009 Pivot Point NSE
Symbol   LTP S3 S2 S1 Pivot Point R1 R2 R3
ABB 734.95 710.08 723.58 729.27 737.08 742.77 750.58 764.08
ACC 802.60 762.87 784.47 793.53 806.07 815.13 827.67 849.27
AMBUJACEM 94.95 91.95 93.35 94.15 94.75 95.55 96.15 97.55
AXISBANK 1,009.05 949.22 982.82 995.93 1016.42 1029.53 1050.02 1083.62
BHARTIARTL 316.40 291.47 303.47 309.93 315.47 321.93 327.47 339.47
BHEL 2,213.00 2148.13 2181.93 2197.47 2215.73 2231.27 2249.53 2283.33
BPCL 623.55 597.57 609.42 616.48 621.27 628.33 633.12 644.97
CAIRN 272.00 258.18 266.13 269.07 274.08 277.02 282.03 289.98
CIPLA 351.80 328.93 341.93 346.87 354.93 359.87 367.93 380.93
DLF 369.55 340.02 356.72 363.13 373.42 379.83 390.12 406.82
GAIL 417.40 403.72 410.17 413.78 416.62 420.23 423.07 429.52
GRASIM 2,409.05 2322.25 2367.95 2388.50 2413.65 2434.20 2459.35 2505.05
HCLTECH 345.95 311.02 326.52 336.23 342.02 351.73 357.52 373.02
HDFCBANK 1,797.35 1751.17 1773.92 1785.63 1796.67 1808.38 1819.42 1842.17
HDFC 2,762.30 2623.85 2686.00 2724.15 2748.15 2786.30 2810.30 2872.45
HEROHONDA 1,676.90 1609.70 1641.30 1659.10 1672.90 1690.70 1704.50 1736.10
HINDALCO 142.70 128.65 136.10 139.40 143.55 146.85 151.00 158.45
HINDUNILVR 271.75 264.52 268.22 269.98 271.92 273.68 275.62 279.32
ICICIBANK 860.70 815.63 840.83 850.77 866.03 875.97 891.23 916.43
IDEA 54.40 51.72 53.17 53.78 54.62 55.23 56.07 57.52
IDFC 165.45 157.28 161.68 163.57 166.08 167.97 170.48 174.88
INFOSYSTCH 2,390.60 2294.45 2345.90 2368.25 2397.35 2419.70 2448.80 2500.25
ITC 254.80 246.82 251.37 253.08 255.92 257.63 260.47 265.02
JINDALSTEL 705.90 654.30 683.70 694.80 713.10 724.20 742.50 771.90
JPASSOCIAT 225.70 214.68 220.83 223.27 226.98 229.42 233.13 239.28
LT 1,637.25 1576.75 1603.75 1620.50 1630.75 1647.50 1657.75 1684.75
M&M 1,027.10 946.93 990.23 1008.67 1033.53 1051.97 1076.83 1120.13
MARUTI 1,577.50 1499.83 1543.43 1560.47 1587.03 1604.07 1630.63 1674.23
NTPC 206.90 197.88 202.63 204.77 207.38 209.52 212.13 216.88
ONGC 1,179.05 1145.88 1161.68 1170.37 1177.48 1186.17 1193.28 1209.08
PNB 918.25 871.78 894.48 906.37 917.18 929.07 939.88 962.58
POWERGRID 103.50 102.10 102.90 103.20 103.70 104.00 104.50 105.30
RANBAXY 507.25 476.33 491.98 499.62 507.63 515.27 523.28 538.93
RCOM 176.00 155.47 166.67 171.33 177.87 182.53 189.07 200.27
RELCAPITAL 841.40 790.97 817.87 829.63 844.77 856.53 871.67 898.57
RELIANCE 1,055.00 978.17 1022.27 1038.63 1066.37 1082.73 1110.47 1154.57
RELINFRA 1,051.05 999.73 1028.18 1039.62 1056.63 1068.07 1085.08 1113.53
RPOWER 145.20 136.55 140.70 142.95 144.85 147.10 149.00 153.15
SAIL 204.85 186.62 197.02 200.93 207.42 211.33 217.82 228.22
SBIN 2,321.75 2239.15 2282.55 2302.15 2325.95 2345.55 2369.35 2412.75
SIEMENS 538.30 518.35 528.80 533.55 539.25 544.00 549.70 560.15
STER 850.70 784.05 822.30 836.50 860.55 874.75 898.80 937.05
SUNPHARMA 1,451.90 1350.03 1406.83 1429.37 1463.63 1486.17 1520.43 1577.23
SUZLON 83.05 72.18 77.08 80.07 81.98 84.97 86.88 91.78
TATAMOTORS 704.00 661.82 685.57 694.78 709.32 718.53 733.07 756.82
TATAPOWER 1,361.95 1316.40 1341.05 1351.50 1365.70 1376.15 1390.35 1415.00
TATASTEEL 555.85 518.15 539.75 547.80 561.35 569.40 582.95 604.55
TCS 699.40 678.30 689.20 694.30 700.10 705.20 711.00 721.90
UNITECH 86.85 81.08 84.28 85.57 87.48 88.77 90.68 93.88
WIPRO 637.85 615.02 627.42 632.63 639.82 645.03 652.22 664.62

Headlines (20-11-2009)

Date: 20 November 2009
 
Thought for the day
 
“You’ve got to get up every morning with determination if you are going to go to bed with satisfaction.”
 
 –George Horace Loriman
 
 GENERAL
 
 1)Notwithstanding the continuing rise of crude oil prices in the international market that have touched the highest mark this year, the Petroleum and Natural Gas Ministry on Thursday ruled out any immediate plans to raise petrol and diesel prices.
 
Hindu

ECONOMY
 
2)THE annual inflation for food items inched up to 14.6% for the week ended November 7 on account of dearer pulses, vegetables, cereals and diary products, a release by the commerce ministry on Thursday showed. Annual inflation for food items was at 10% in corresponding week last year. The government has shifted to a system of reporting the wholesale price index for only food and fuel categories. The entire WPI will now be released only once a month.

ET

3)With a staggering wealth of $32 billion(about Rs 1.5 lakh crore), industrialist Mukesh Ambani is the richest Indian, followed by steel tycoon Lakshmi Mittal and Anil Ambani, business magazine Forbes said on Thursday in its annual rich list for the country.

FE

CORPORATE / INDUSTRY
 
4)RELIANCE Industries may be the biggest corporate brand in India, but Bharti Airtel is the strongest. The country’s largest mobile operator is the only corporate brand to be awarded the AAA rating, or “extremely strong”, in Brand Finance’s Brand Power Rating(BPR). BPR reflects a brand’s strength in the marketplace compared to its competitors and how effectively a company converts this into business results, while brand value is the proportion of a company’s overall value directly attributable to the use of its trademark. Airtel has managed to improve its brand strength in spite of increasing competition at the marketplace, from AA+.

ET

5)SUZLON Energy, the world’s third-largest maker of wind turbines, said late Thursday that it has sold a 35% stake in subsidiary, Hansen Transmission, for $370 million(or Rs 1,720 crore at current exchange rates), as part of its efforts to reduce debt.

ET

6)Pollution control equipment maker Thermax today said it has bagged an order worth Rs 477.77 crore from an Orissa-based company for construction of a captive power plant. According to the contract, the company would be providing various systems, including air pollution control, water treatment and effluent treatment units for the power plant, Thermax said in a filing to the BSE.

BL

7)JSW Steel on Thursday announced a strategic alliance with Japan’s second-largest steelmaker JFE Steel Corporation, but the markets were disappointed that the pact does not immediately involve the acquisition of an equity stake in the Indian company.

ET

8)McNally Bharat Engineering Company today said it has bagged an order worth Rs 306.45 crore for engineering related works at Rourkela Steel plant. The company received the order for various works including design and erection of ‘New Coal Handling Plant’ at Rourkela Steel Plant, McNally Bharat said in a filing to the BSE.

BL

MONEY & BANKING
 
9)THE rupee weakened on Thursday tracking largely weaker Asian currencies, with a steady dollar against majors also hurting sentiment. The dollar hovered near the year’s lows against a basket of currencies on Thursday after slipping the previous day as economic indicators and a Fed official reinforced the view that US rate hikes are far away. The rupee ended at 46.69 against the dollar, weaker than its Wednesday’s close of 46.20.

ET

10)A day after the Government asked state-owned banks to look at creating a few big banks through mergers and acquisitions, Canara Bank said on Thursday that it was scouting for domestic acquisition opportunities.

BL

11)Even as the days of cheaper rates are numbered, banks are trying to woo their customers for used cars with lower interest rates. HDFC Bank on Thursday slashed its interest rates on used cars from 15 to 13.5%. The move is expected to induce other banks to revisit their rates in this segment.

FE
 
MARKETS
 
12)The domestic equity bourses fell on concerns that the government might take steps to curb capital inflow if foreign investment surge prompts overseas investors to book profits. The 30 share Sensex of the BSE lost 213.13 points or 1.25% to end the day at 16,785.65 points. The broader S&P CNX Nifty of the NSE ended the trading session at 4,989, losing 1.30% or 65.70.

FE

13)The Power Finance Corp stock gained 3.2 per cent to Rs 253.80 after the company announced that it entered a joint venture agreement with NTPC, Power Grid Corporation of India and Rural Electrification Corporation for formation of a public limited company.

BS

14)The Amrit Banaspati stock gained 20 per cent upper limit of circuit filter closed at an all-time high of Rs 92.85 on hopes that the government might re-impose custom duty on edible oils.

BS
 
COMMODITIES
 
15)Agri-commodity exchange NCDEX on Thursday launched futures trading in platinum in an endeavour to widen its presence in the metal segment. A total of four contracts in platinum were offered for trading on Thursday, of which the first contract will expire next month, while the rest three in March.

ET

16)Gold and silver retreated from record highs on the bullion market on Thursday on reduced off-take. Silver ready (.999 fineness) dropped by Rs 265 a kg to Rs 28,695. Standard gold(99.5 purity) dropped Rs 15 for 10 gm to Rs 17,190. Pure gold(99.9 purity) fell Rs 20 for 10 gm to Rs 17,280.

BL

17)SOYABEAN prices have jumped up to 20% in major spot markets in a month as traders and farmers are not offloading the commodity anticipating a further rise in rates.

ET
 
COMMUNICATIONS
 
18)THE largest telecom operator in India Bharti Airtel has slipped to third positions in terms of monthly additions, according to figures released by Auspi and COAI. Bharti Airtel in October added about 2.7 million new users, lower than 2.9 million added by Vodafone Essar and over 3.8 million added by Tata Teleservices.

ET
 
BUSINESS PROCESS OUTSOURCING
 
19)Indian BPO firms are now looking beyond Mexico in Latin America to set up their near-shore delivery centres. Countries such as Costa Rica and Nicarague, among others, have emerged as new destinations for the Indian vendors to serve clients in North America.

BL
 
INFORMATION TECHNOLOGY
 
20)FOR India’s top tech firms seeking to take the inorganic growth route in the US and European markets, successful acquisitions are becoming harder to come by as potential targets demand high valuations. Cultural barriers in several countries also act as a bottleneck.

ET

21)Notwithstanding the speculation that continues over the stake sale of the Patni brothers(who hold 48.3 per cent) and General Atlantic (which holds 18 per cent) which its management consistently denies, Patni Computer Systems says it hopes to become the first company in the country to host all its information technology services on the cloud (a metaphor for the internet).

BS

INTERNATIONAL
 
22)Oil traded near $80 a barrel in New York after rising yesterday as a government report showed US crude and fuel supplies dropped along with refinery production and imports. Oil reached a one- week high of $80.33 on Wednesday after the Energy Department said crude inventories declined 887,000 barrels to 336.8 million last week.

ET

23)JP Morgan Chase & Co, the second-largest US bank, agreed to buy the half of Cazenove it didn’t already own for 1 billion pounds ($1.7 billion), sealing the takeover of a 190-year-old British brokerage whose clients include the Queen of England.

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 (19-11-2009)

Date: 19 November 2009
 
Thought for the day
 
“We generally change ourselves for one of two reasons: inspiration or desperation.”

 – Jim Rohn
 
GENERAL
 
1)The US and other advanced countries may be dithering in the fight against climate change but India is ready to launch its Solar Mission under the National Action Plan on Climate Change, with plans to generate 1,000 mega watts of power by 2013.

TOI

ECONOMY
 
2)THE Ministry of Corporate Affairs is all set to introduce a governance code for unlisted companies on the lines of the one for listed firms to encourage more companies to list on the stock exchanges. Elaborate disclosures and compliance with governance code is seen as one big reason why many companies do not want to raise public funds and list on exchanges.

ET
 
CORPORATE / INDUSTRY
 
3)Karvy Financial Services Ltd(KFSL), part of Karvy Group, an inte- grated financial services group, is planning to raise Rs 150 crore of debt and Rs 50 crore of equity during the current financial year. While the equity portion will come from the parent company, the debt is likely to be arranged through mutual fund companies and banks. According to Amit Saxena, chief operating officer of KFSL, the company obtained its licence in April 2009 and started its operations with equity capital of Rs 50 crore. “We started doing securities finance and so far have disbursed about Rs 25 crore. Our plan is to have a book size of Rs 250 crore by the end of the current financial year and take it up to Rs 4,500 crore by the end of the fifth year. The money being planned to be raised would be used to cater to the disbursement targets for the year,” he said, adding “We are already talking to various mutual fund companies and banks to raise the debt portion of Rs 150 crore.

FE

4)JSW Steel is close to signing a strategic alliance with a European steel company that could involve the foreign firm picking up a minority stake and offering technology to help India’s third largest steel maker to make speciality steel products, two people close to the matter said.

ET

5)Prism Cement on Wednesday said it would merge H&R Johnson(India) and RMC Readymix(India) with itself. The shareholers of the company at their meeting held on Tuesday approved in the scheme of amalgamation, Prism Cement said in a filing to the BSE.

FE

6)Infrastructure company Pratibha Industries on Wednesday said it has bagged an order worth Rs 294.30 crore from UP Jal Nigam. The company has secured the contract of Meerut Water Supply Project from UP Jal Nigam, Meerut, Pratibha Industries said in a filing to the BSE.

BL
 
MONEY & BANKING
 
7)The rupee ended up against the dollar after a day of lacklustre trades because banks sold the greenback noting its fall against the euro, dealers said. Exporters’ dollar sales also aided the Indian unit. The Indian unit closed at 46.21 to a dollar compared with 46.30 on Tuesday.

BL

8)THE government asked the country’s largest public sector banks to look out for mergers and acquisitions opportunities, setting in motion the process of consolidation in public-sector dominated banking industry. In a meeting with the heads of the country’s largest public sector banks on Wednesday, the government asked them to start identifying strategic fits for themselves after considering geographical and business synergy.

ET

INSURANCE
 
9)Insurance Regulatory & Development Authority(Irda) is considering allowing life insurers to invest part of policyholders’ money in equity derivatives, a move that would allow these firms to hedge the risks emanating from cash markets
 
MARKETS
 
10)The country’s equity indices snapped its winning rally and ended the day below the dotted line following weak cues from the Asian markets and selling in the oil & gas and banking stocks. Dealers in the market said that markets are going through the pause mode as there is no fresh trigger. The 30-share Sensex of the Bombay Stock Exchange lost 51.87 points or 0.30% to end the day at 16,998.78 points. The broader S&P CNX Nifty of the National Stock Exchange lost 0.15% to close the day at 5054.70.

FE

11)SHIPPING stocks Essar Shipping, Mercator Lines and GE Shipping rose sharply on Wednesday, as the Baltic Dry Freight Index touched a 14-month high of 4,381. Essar Shipping rose 12% to close at Rs 70.45, Mercator gained 8% to close at Rs 61.90, Shipping Corporation climbed 3% to Rs 150.30, While trading in Great Eastern Shipping was frozen at the upper end of the 5% intraday circuit filter. Analysts said increased port congestion, strong iron ore and coal imports into China are some of the reasons that contributed to the surge in dry bulk rates over the past two weeks.

ET

12)The Infosys stock gained 2 per cent to Rs 2,433.60, an all-time high. In last six trading days the stock appreciated 10 per cent, after the company signed an agreement to acquire all of the out- standing interests of McCamish Systems LLC for around $38 million.

BS

13)There is no consensus among market participants on extension of market hours, something recently permitted by Securities and Exchange Board of India, said Mr Ravi Narain, Managing Director of NSE.

BL

IPO
 
14)THE Securities and Exchange Board of India(Sebi) plans to reduce the time taken to process initial public offers(IPO) applications to seven days from the existing 20 days.

ET

15)Cox & Kings (India) Ltd’s initial public offer of a little over 15.7 million shares received about 9.5 million bids, or 60 per cent of the issue size, on the first day, a statement from the BSE said.

BL

COMMODITIES
 
16)Gold futures have extended record highs above $1,150 an ounce Wednesday as the dollar dips and the metal’s alternative currency sheen brightens.

BL

17)Copper hit a 14-month high on Wednesday as the dollar fell and equity markets bounced back, while rising inventories remained to limit gains. By 1152 GMT, copper for three month delivery on the London Metal Exchange traded at $6,970 a tonne from $6,826 at the close on Tuesday.

BS

18)Gold and silver prices hit yet another peak on the bullion market on Wednesday sparked by hectic buying in view of rising trend in overseas markets. Standard gold(99.5 purity) soared by Rs 190 per 10 gm to Rs 17,205 from yesterday’s closing level of Rs 17,015. Pure gold(99.9 purity) also shot up by Rs 195 per 10g to Rs 17,300. Silver ready(.999 fineness) strengthened by Rs 560 a kg to Rs 28,960.

BL
 
REAL ESTATE
 
19)Mumbai-based realty firm Lodha Developers, which plans to hit the capital market with its IPO early next year, will invest Rs 6,000 crore in the next three years on construction of its existing projects.

FE

BUSINESS PROCESS OUTSOURCING
 
20)Nasscom’s Data Security Council of India(DSCI) on Tuesday said that almost a quarter of 2.3 million Indian IT-ITeS workforce has been registered under the National Skills Registry(NSR). “We have registered almost 6 lakh IT-ITeS employees under the national database. We plan to cover the entire IT work- force under the database in 12-18 months,” DSCI CEO Kamlesh Bajaj told ET.

ET

21)FOUR Soft, which provides software solutions for the transport and logistics segments, hopes to become a $100-million company in the next three years. The $30-million company, as part of its growth plans, is looking at foraying into the BPO space and tapping newer markets through inorganic expansion by next year.

ET

INFORMATION TECHNOLOGY
 
22)NASSCOM, the trade association for India’s $60-billion IT industry, plans to seek government help to ensure technology transfer from global defence majors for execution of offset contracts by Indian companies. IT companies are one of the beneficiaries of the multi-billion-dollar defence and aerospace contracts that are to be finalised over the next 12 months.

ET

23)GLOBAL HR experts abhor the idea of taking work home. But local HR managers have turned the debate on its head: they now prod employees to carry their office home. A raft of technology firms such as Hewlett-Packard, Nokia Siemens Networks, Dell, Cisco and IBM reckon that letting employees work from home not only saves office expenses, but also helps ramp up productivity by saving precious time wasted in India’s labyrinthine peak-hour traffic.

ET

24)In less than a month since its launch on October 22, over 2,000 Indian companies are in the process of installing Microsoft’s latest operating system Windows 7. The companies include major IT companies like Infosys, Wipro, NIIT, car companies like Maruti, even the Bangalore international airport, Manipal University, besides many small-and medium-sized businesses.

BS

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 (18-11-2009)

Date: 18 November 2009
 
Thought for the day
 
 “The only way to do great work is to love what you do.”
 
 –Steve Jobs
 
GENERAL

1)Meeting Prime Minister Manmohan Singh just days after the arrest of Pakistani-American terror suspect Tahawwur Hussain Rana, Canadian Prime Minister Stephen Harper has assured that his country ‘stand firmly with India in dealing with global terrorism.” India and Canada also indicated they would like to sign a civil nuclear agreement. But what they actually signed on Tuesday was an agreement on cooperation in the ‘field of energy’, dealing mostly with renewable sources of energy and oil and gas exploration.

Indian Express

ECONOMY
 
2)With economies reviving from the global meltdown, India is targeting annual foreign direct investments worth $50 billion by 2012. It would double the inflows by 2017. In order to make the investment environment in states more lucrative for prospective overseas investors, the commerce ministry would set up a panel comprising state industrial ministers. The panel would recommend measures to iron out procedural difficulties faced while setting up a business.

FE

CORPORATE / INDUSTRY
 
3)MUKESH Ambani, chairman of India’s biggest firm, Reliance Indus- tries(RIL), indicated on Tuesday that an overseas acquisition might be on the cards. There has been widespread speculation about a possible buy of Lyondel-Bassel, a bankrupt Rotterdam-based petrochemical company. The company would scale up its current businesses and may acquire new ones, Mr Ambani said. The meeting approved the long- awaited bonus shares and the shareholders were told that their company was poised to grow with increasing oil and gas assets and the financial strengths to expand businesses. RIL fixed November 27 as the record date for distribution of bonus shares.

ET

4)In what could be termed as the fastest turnaround for the hospitality sector, key metros in the country are once again facing a shortage of hotel rooms, compared with a 50% drop in occupancy at its peak last year.

FE

5)GILBARCO Inc, a US-based fuel control service provider, said on Tuesday that it would acquire the petroleum dispensing pump business of L&T, India’s largest engineering and construction firm, as part of a plan to increase its presence in the local metering business.
 
ET
 
MONEY & BANKING
 
6)The rupee depreciated marginally against the dollar on Tuesday, as the greenback strengthened against other major currencies. The domestic currency opened at 46.17 and weakened to touch an intra-day low of 46.36. It ended the day at 46.32, against the previous close of 46.22.

BL

7)UCO Bank expects to receive Rs 750 crore from the Government this month to shore up capital, its Chairman and Managing Director, Mr S K Goel, told NewsWire18.

BL

8)If you are in need of money, now may be the right time to apply for personal loan from a public sector bank(PSB). After keeping purse strings tight for quite some time, banks are now turning positive on personal loans.

BL
 
INSURANCE
 
9)The economic downturn might have affected the sale of new policies, but it has not prompted individuals from renewing their life covers. According to insurers, renewal premium went up by 18.6 per cent to Rs 62,429 crore during the first half(H1) of the cur- rent financial year, as against Rs 52,606 crore during April- September 2008. The increase was higher in case of unit-linked insurance products(Ulips), which rose by 34 per cent to Rs 25,433 crore during the period as against Rs 19,024 crore a year ago.

BS
 
MARKETS
 
10)The 30-share Sensex of the BSE added 18.41 points or 0.11% to end the day at 17,050.65 points. The broader Nifty of the NSE gained 4.20 points or 0.08% to close the day at 5,062.25 points. According to provisional figures furnished by the BSE, foreign institutional investors were net buyers at Rs 463.42 crore. While domestic institutional investor sold stocks worth Rs 235.54 crore.

FE

11)Mutual funds(MFs) and insurance companies are set to lock horns over the next couple of months, as the tax planning season gets underway. Equity linked savings schemes(ELSS) and unit-linked insurance plans(ULIP) will fight it out for a share of funds from people who are looking to reduce their tax liabilities.

ET

12)SHAREHOLDERS can now cast their votes on corporate proposals through the click of a mouse without having to worry whether their response has reached the company or not. CDSL Ventures(CVL), a wholly-owned subsidiary of Central Depository Services(India), on Tuesday launched the e-voting system for listed companies.

ET

13)The Bombay Stock Exchange(BSE)has made certain changes in the settlement period of index-based monthly futures and options(F&O) as well as all weekly options contracts, a move that will improve liquidity in the derivatives segment. “It has been decided to change the expiry of all monthly index futures and options from last Thursday of the month to the third last Thursday of each contract month. “Further, expiry date of all weekly options con- tracts currently available for trading will also be changed to cycle of Friday-Thursday from cycle of Monday-Friday, that is expiry on Thursday instead of Friday,” the bourse said in a statement. This change would take effect for all contracts starting from November 20, 2009.

ET
 
IPO
 
14)Cox and Kings’ initial public offer(IPO) has got good response with nearly 15 per cent of the IPO being allotted to 6 anchor investors on Tuesday. India Infoline is the Book Running Lead Manager for the issue. Six investors have been allotted 2,744,480 shares.

BS

COMMODITIES
 
15)Gold prices on Tuesday surged by Rs 200 and touched an all-time high of Rs 17,300 per 10 gram in the bullion market in New Delhi on frantic buying by jewellers for the ongoing marriage season amid firming global trend. Silver rose by Rs 1,000 to Rs 28,350 per kg.

DC

16)Pepper futures fell on Tuesday on bearish reports from overseas that the US market was covered up to December and the requirements were for January to March. Besides there was a feeling that those holding long positions might liquidate.

BL

REAL ESTATE
 
17)Selling bungalow-plots at a price of a 3-bedroom-hall-kitchen (BHK) apartment in metros is the new buzz among medium-to-large real estate developers due to rising demand amidst a realty revival. According to Anand Narayanan, residential director, Knight Frank India Private Ltd, “What was once the strong hold of tier-II and tier-III developers, is now attracting a lot of interest from their tier-I counterparts.”

FE

18)THERE is one more addition to the long list of real estate developers jumping into the affordable home space with Bangalore-based Brigade Enterprises announcing the launch of Brigade Value Homes. The company is launching four projects simultaneously – one each in north, south, east and west Bangalore.

ET
 
INFORMATION TECHNOLOGY
 
19)JAPANESE business conglomerate NTT Group has emerged as a serious contender for acquiring a majority stake in IT firm Patni Computer Systems, two persons familiar with the matter told ET. NTT is the latest to join the race to take control of the Mumbai-based firm. Other companies that have reportedly evinced interest in the bidding process include L&T Infotech and Japanese IT services provider Fujitsu.

 ET

20)INDIA’S computer hardware market, which includes servers and desktops, is set to regain double digit growth rates from next year, as customers seek to establish new data centres and invest more in expanding their operations. Top hardware vendors such as IBM, HP and Acer have already started seeing a revival in their sales, and experts forecast the hardware market to rebound by next year.

ET

21)Mahindra Satyam (formerly Satyam Computer Services), which caters to the engineering services market, might look at servicing its new parent firm, Mahindra & Mahindra(M&M), as a client. This comes at a time when M&M is preparing to enter the US market with its market-specific vehicles. Experts said that Mahindra Satyam would come handy for M&M and could become its largest client.

FE
 
INTERNATIONAL
 
22)Chinese and US regulators are negotiating a pact aimed at encouraging Chinese financial institutions to buy into small and medium-sized banks in the United States, bankers briefed on the plan said on Tuesday.
 
BS

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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 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 (17-11-2009)

Date: 17 November 2009

Thought for the day

“Nothing happens by itself. It all will come your way once you understand that you have to make it come your way, by your own exertions.”

–Ben Stein

GENERAL

1)India and Iran on Monday held talks on closer cooperation in energy, transit routes to central Asia and sharing of information on militant activity in the Pakistan-Afghanistan belt. In the first high-level talks after elections in both countries, Prime Minister Manmohan Singh and External Affairs Minister S.M.Krishna, in talks with visiting Iranian Foreign Minister Manouchehr Mottaki, flagged New Delhi’s interest in the Iran-Pakistan-India gas pipeline.

Hindu

ECONOMY

2)STIMULUS packages announced to perk up the economy during the slowdown are unlikely to be withdrawn in the current financial year and the exit when it happens will be gradual, finance minister Pranab Mukherjee said on Monday.

ET

3)The economic think-tanks CMIE and DSP Merrill Lynch on Monday scaled up the GDP growth projections to 6.2% this fiscal on back of the faster-than expected recovery, even as professional fore- casters in an RBI survey scaled it down to 6% from 6.5%.

FE

4)The International Finance Corp(IFC), the world Bank’s private sector lender, was aiming at about $1 billion a year new investments in India over the coming few years, matching the level of recent years, a top executive said.

BS

CORPORATE / INDUSTRY

5)THE Kalyani Group’s flagship company Bharat Forge plans a big foray into the power sector with an investment of up to Rs 50,000 crore and a targeted generation capacity of up to 10,000 mw, over the next 10 years. According to industry sources, the company plans to set up power plants in Gujarat, Maharashtra, coastal Andhra Pradesh and Tamil Nadu.

ET

6)Suzlon Wind Energy Corp, the North American arm of Suzlon Energy, has bagged a 21MW order from Grant County Wind Farm in Minnesota. The company will supply 10 wind turbines of 2.1 MW each, which will provide enough electricity to power 7,000 homes in the area.

BL

MONEY & BANKING

7)The rupee gained marginally against the dollar on Monday, on the back of capital inflows into the country. The domestic currency opened at 46.14 and strengthened to touch an intra-day high of 46. It ended the day at 46.22, against the previous close of 46.30.

BL

8)The government has said that public sector banks have asked for much more capital than it can give. All state-run banks put, including IDBI and State Bank of India’s associates, have sought Rs 40,000 crore from the government to expand credit over the next three years. However, the government can extend support only to the extent of Rs 14,000 crore($3 billion), being provided by the World Bank.

BS

INSURANCE

9)ICICI Prudential Life Insurance has launched a unit-linked plan called ‘ICICI Pru Pinnacle’. The long-term wealth creation plan offers customers an advantage of varying exposure to equities along with downside protection, a press release said.

BL

MARKETS

10)Gains in most blue chips, led by banks and autos, as well as positive trading in international markets, helped shares end higher on Monday. The Sensex rose 183.68 points, or 1.1 per cent, to close at 17,032.51. It traded between 16,893.11 and 17,083.20 during the session. On the National Stock Exchange, the 50-stock S&P CNX Nifty gained 59.10 points, or 1.2 per cent, to end at 5,058.05.

BL

11)NET purchases of Indian shares by foreign institutional investors has crossed the $15-billion mark for the current calendear year, and market watchers say a depreciating dollar could drive more money into emerging markets like India in the near term, as global investors try to maximise returns. In 2007, foreign funds had net pumped in $17.65 billion into Indian shares. That figure is unlikely to be surpassed this year, say experts, as most global investors tend to book profits towards the close of the calendar.

ET

12)THE scrip of mid-tier IT company NIIT Technologies has gained 12% in the past one month after its September quarter results. With this, the company has outperformed not only its top-tier peers but also the CNX IT index, which may post a return of just over 8% during the same period. The Sensex and the Nifty lost over 1%.

ET

13)The Maruti Suzuki stock surged 5.45 per cent to Rs 1,560.40 on reports that the demand for passenger cars remains upbeat in the domestic market. The stock has risen 10 per cent in last two trading sessions from a low of Rs 1,424.30 on November 12.

BS

IPO

14)Travel and tourism firm Cox & Kings on Monday said it will raise up to Rs 610.39 crore through an initial public offering(IPO) and plans spending about Rs 150 crore of amount on global acquisitions. The company has filed a draft Red Herring Prospectus (DRHP) with market regulator Sebi for offloading 18,496,640 equity shares(diluting 29.40% of the promoters’ stake) at a price band of Rs 316-330. The offer will open for the public subscription between November 18 and 20.

ET

MUTUAL FUNDS

15)Fidelity Mutual Fund on Monday announced the launch of an open- ended, diversified, equity fund that will invest in companies that have more intrinsic value than reflected in their stock prices.

BL

COMMODITIES

16)Gold touched a fresh high above $1,130 an ounce in Europe on Monday as momentum from recent gains and a slide in the dollar index sparked fund buying of the precious metal. Gains in gold boosted interest in other precious metals, with platinum, palladium and rhodium all hitting their strongest in more than a year. Spot gold reached at peak of $1,132.95 an ounce, and was bid at 1,130.60 an ounce at 1021 GMT, against $1,118.50 late in New York on Friday.

BS

17)Gold futures may breach the psychological Rs 17,000-mark this week on the back of a weaker dollar, enhancing the yellow metal’s appeal as an alternative investment, analysts said. The most-traded December gold contract was trading 0.46% higher at Rs 16,877 per 10 grams after hitting a fresh record high of Rs 16,925 earlier. The contract has struck 12 record highs since February 20, earlier this year, with eight all-time highs this month.

FE

REAL ESTATE

18)Godrej Properties Ltd, the real estate arm of the Godrej group, announced setting up of its first commercial project in the northern region with an estimated investment of Rs 200 crore. “Godrej Eteria, which is coming up in Chandigarh, will be our first ever commercial project in north. It will involve an investment of Rs 200 crore,” company’s executive director Pirojsha Godrej said.

FE

COMMUNICATIONS

19)US telecom major AT&T and the world’s largest chip maker Intel were among the foreign players that showed interest today in the pre-bid conference for third generation (3G) spectrum, which kick-started the process for the 3G auction in the country. The conference was dominated by existing players, such as Vodafone Essar, Bharti Airtel, Reliance Communications, as well as new players like Uninor, STel and Datacom(which are yet to launch their mobile operations). Several of these companies had already made public their intention of participating in the auction.

BS

INFORMATION TECHNOLOGY

20)DELL-Perot Systems, which bundles hardware and software solutions for offering low-cost services to hospitals and other healthcare companies, plans to replicate its American model for gaining more business in India’s $12-billion domestic market. The company, which is already offering its pay-as-per use service to healthcare customers in the US, signed up with Max Healthcare earlier this year bid- ding against domestic rivals TCS and Wipro for Rs 90 cr, 10-year contract. At a time when the US is preparing to spend almost $46b on modernisation of its ageing healthcare systems, and even the Indian government has aggressive IT-enabled programs, tech firms such as TCS, Infosys and Wipro will have to compete against Dell, Perot and IBM.

ET

21)Mahindra Satyam, the information technology outsourcing company has joined the Symbian Foundation, a non-profit organisation that develops and licences its Symbian OS(open source) operating system for data-enabled mobile phones.

BS

INTERNATIONAL

22)Sales at US retailers rose more than expected in October as consumers bought more motor vehicles and other goods, but the previous month’s figures were revised sharply downward, a government report showed on Monday.

BS

23)General Motors Co will announce on Monday it plans to start re- paying a $6.7 billion loan to the US Treasury by year-end due to modest operating improvements, a source knowledgeable about the situation said.

BS

24)Japan’s government inched toward agreeing new stimulus measures that could be worth $30 billion on Monday as economic growth is likely to slow next year due to sluggish personal spending and rising inventories.

FE

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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 (16-11-2009)

Date: 16 November 2009

 Thought for the day

“Take care to get what you like or you will be forced to like what you get.”

 –George Bernard Shaw

GENERAL

1)CANADIAN Prime Minister Stephen Harper’s three-day visit to India from Sunday will be dominated by talks over a nuclear deal and new trade pacts in a bid warm a relationship that turned frosty when Ottawa cut off atomic trade after New Delhi’s 1974 nuclear test.

Indian Express

ECONOMY

2)India and the US have agreed to collaborate in encouraging investments and research and development in the solar energy space. Both countries will tap into the large potential of solar energy in India, which is starting the ambitious solar development plan.

BL

CORPORATE / INDUSTRY

3)CAIRN India has successfully drilled and completed its first horizontal oil well at Rajasthan’s Barmer field that will add 11,000 barrels of oil per day(bopd) to the earlier reported production volume of 5991 bopd. The field continues to ramp up production.

ET

4)INDIA Inc is still far off the mark when it comes to innovations and R&D spending. Barely four Indian companies made it to a list of top 1,000 publicly-traded companies in the world which were the biggest spenders on research and development, two fewer than last year. The list, prepared by global management consulting firm Booz & Co., has Tata Motors, BHEL, Dr Reddy’s Lab and Sun Pharma this year. Those from last year’s list which did not make it this time are Ranbaxy Laboratories and Aditya Birla Nuvo Ltd.

ET

5)L&T Heavy Engineering is set to inaugurate a high tech manufacturing facility in Sohar, Oman. The new unit in the SIPC area, Sohar, will augment the existing modular fabrication facility, making it one of the largest integrated manufacturing complexes in the region, catering to the hydrocarbon and power sectors, a company release said.

BS

6)THE Aditya Birla group on Sunday approved a proposal to merge a newly-created cement unit with its existing cement subsidiary UltraTech, thereby consolidating the group’s cement business that currently accounts for a fifth of the Indian cement market. The boards of UltraTech Cement and Samruddhi Cement(a wholly-owned subsidiary of Grasim Industries), unanimously approved the merger of the two companies which would ultimately create an entity with a net worth of Rs 8,404 crore.

ET

MONEY & BANKING

 7)The Oriental Bank of Commerce plans to expand its network by opening around 200 new branches each annually in the next three fiscals. Mr T Y Prabhu, Chairman-cum-Managing Director, on Sun- day said the bank had sought a capital support of Rs 1,000 crore from the government to implement its expansion plan.

BL

INSURANCE

 8)With rampant unhealthy practices plaguing the domestic insurance industry, particularly general insurance, sector regulator Insurance Regulatory & Development Authority(Irda) has now turned the heat on some foreign insurance brokers operating in India.

FE

MARKETS

9)Indian equity indices, which ended last week with huge gains, are likely to remain volatile in the coming days. With no major cues from the domestic markets, local markets will be looking for global cues and foreign inflows for some triggers in the next week.

FE

10)Foreign institutional investors(FIIs) may have continued to pour money into the Indian markets in recent months, but they weren’t uniformly bullish on all stocks or sectors. FIIs have actually trimmed their stakes in half of the BSE Sensex companies in the quarter from June to September 2009. Big names as Bharti Airtel, ONGC, BHEL and ICICI Bank saw a dip in FII ownership over the past quarter. Over 180 companies in the BSE 500 basket also saw a fall in their FII holdings in this period.

BL

IPO

11)Public sector hydropower producer Satluj Jal Vidyut Nigam(SJVN) said on Sunday its proposed initial public offer was likely to come in the next fiscal and the company was in the process of appointing independent directors, a prerequisite for firms planning to hit the market.

BS

12)Lilliput Kidswear plans to raise over Rs 150 crore through an Initial Public Offer (IPO) in the next six months, a top company executive said. Kids apparel maker said it would use the funds to expand its retail network.

ET

MUTUAL FUNDS

13)The Securities & Exchange Board of India(Sebi) may tighten mutual fund(MF) regulations to make these funds more retail investor-friendly. The regulator, which recently announced that recognised stock brokers would be allowed to trade in MF units, is now planning to bolster the 20-25 Rule by taking it to the ‘plans(series) level’. The 20-25 Rule requires each mutual fund scheme to have at least 20 investors, while no single investor can hold more than 25% of assets. Since it is applicable only up to the scheme level at present, many funds are able to skirt the Rule.

FE

14)Religare Mutual Fund said its PSU Equity Fund has received good investor response with the scheme garnering Rs 229 crore, from new fund offer. “The fund has collected over Rs 229 crore, with close to 37,000 applications coming in from over 170 cities and towns across the country,” the Religare Mutual Fund Chief Executive Officer, Mr Saurabh Nanavati, said.

BL

COMMODITIES

15)While gold continues to touch new highs, silver seems to be tired of tagging along with precious yellow metal. After outperforming gold in the initial six months of 2009, silver has taken a back-seat now. Gains in silver have been capped due to movement in base metals and stalled ETF interest. However, a recovery in economic activity is expected to fuel industrial activities, which, in turn, might support silver prices in the coming days, feel analysts. As per data provided by Kotak Commodity, silver(silver fix) has rallied 60% so far this year as against the 27% rally in gold. Copper, on the other hand, has jumped 112% so far this year.

FE

16)The firm/steady trend in all the pepper origins gives the impression that there is likely to be a tight supply position if the prevailing steady prices in all the producing countries are any indication. In the international market prices of all the origins were holding steady to firm. Buyers were on a wait and watch mode. Indian parity on Saturday was at $3,350 a tonne (c&f) and almost competitive with other origins, market sources told Business Line.

BL

17)Maize prices were stable during last week at Rs 9,300 per tonne against the week-ago period as traders waited for the market to take direction, and also on concerns over quality, according to US Grains Council.

FE

COMMUNICATIONS

18)THE process for auctioning third generation(3G) radio frequencies or spectrum that is vital for telecom companies to offer high-end services such as ultra fast internet and data services on the mobile kicks off in Delhi on Monday(November 16), with the pre-bid conference.

ET

INFORMATION TECHNOLOGY

19)INDIAN IT majors may see a 10-15% fall in billing rates from their European customers as offshore outsourcing is likely to be- come costlier by 25% following an European Union move to impose value-added tax (VAT) for services delivered from non-EU locations. British Petroleum and ABN Amro will have to bring down billing rates for Indian tech firms including TCS, Infosys and Wipro by at least 10-15%, according to experts.

ET

20)Information technology services firm 3i Infotech plans to offshore some of its work as well as implement a four-day work week for its US employees, in order to cut costs, a top company official has said.

BS

21)HCL Security, subsidiary of HCL Infosystems, is a fairly new entrant in the homeland security market, dominated by the likes of Accenture, IBM, SAB, Lockheed Martin, Bosch and Honeywell. But it is confident on making a mark.

BS

INTERNATIONAL

 22)Hitachi Ltd, Japan’s biggest electronics firm by revenues, plans to raise up to 400 billion yen($4.5 billion) by issuing new shares and convertible bonds to shore up its battered capital base, two sources familiar with the matter said. The sources, who asked not to be identified ahead of an official announcement anticipated as early as Monday, said Hitachi plans to sell about 300 billion yen worth of shares and another 100 billion yen in convertible bonds. The public share offering would be its first in 27 years.

BS

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