Headlines (21 Oct 2009)

Date: 21 October 2009

Thought for the day

“If you care at all, you’ll get some results. If you care enough, you’ll get incredible results.

–Jim Rohn

GENERAL

1)The Obama administration has given a thumbs-up to India’s develop- mental work in Afghanistan, rejecting Islamabad’s complaints that New Delhi’s activities there were detrimental to Pakistan’s security.

 TOI

ECONOMY

2)The Prime Minister’s Economic Advisory Council expects industrial output to grow in double digits through the remainder of 2009-10, implied by its projection of an 8.5% growth in the index of indus- trial production(IIP) for the year. The EAC, chaired by C Rangarajan, will release its economic outlook for 2009-10 on Wednesday.

FE

CORPORATE / INDUSTRY

 3)Tata Motors, India’s largest automobile producer by sales, has bought the remaining stake of 79 per cent in Hispano Carrocera SA, Spain’s largest bus and coach bodies manufacturer, for an undisclosed sum.

BS

4)India’s largest dockyard, Pipavav Shipyard, has signed a contract with ONGC for construction and supply of 12 offshore supply vessels at an aggregate value of about Rs 513.83 crore($111.849 million).

BS

5)Hindustan Construction Company(HCC) on Tuesday said it has bagged an order worth Rs 167.67 crore from Gujarat Water Infra- structure for water supply related works.

FE

MONEY & BANKING

 6)The rupee appreciated by 19 paise against the dollar on Tuesday, buoyed by the greenback’s weakness internationally. The rupee opened at 46.08 and strengthened to touch an intra-day high of
 45.94. It weakened to close at 46.11, against the previous close of 46.30.

BL

7)HOME loan borrowers can now look forward to a fairer deal from banks. A panel constituted by Reserve Bank of India has proposed a transparent pricing structure for floating rate loans where banks cannot manipulate the rate. Unlike the past, when banks passed on the benefit of falling rates only to new customers, the new structure envisages a system where the benchmark rates are automatically revised when a bank’s cost of funds come down.

ET

MARKETS

8)The Indian equity indices, after witnessing intense volatility throughout the trading session, ended the day on a negative terrain because of profit booking. The 30-share Sensex of the BSE lost 103 points or 0.59% to end the day at 17,223.01 points. The broader S&P CNX Nifty of the National Stock Exchange(NSE) was down by 27.35 points or 0.53% to close at 5,114.45 points. Dealers in the market said despite the fall in the market, foreign institutional investors continued to buy and were net buyers at Rs 275.89 crore, while domestic investors were sellers.

FE

9)Industry body Assocham has projected that the key index of Bombay Stock Exchange is likely to touch the 20,000 mark by January 2010, on the back of rising business confidence of investors and FIIs in India. The Chamber said that the National Stock Exchange may also touch the 6,000 mark by that time next year.

ET

IPO / FPO

10)THE government plans to give small investors a 5% discount when it sells shares in three state-run companies, hoping to lure individual investors who have shown lukewarm interest in two previous public issues by government firms. Retail investors in the follow-on public offers of Rural Electrification Corporation and NTPC and the initial public offer of Satluj Jal Vidut Nigam(SJVNL) due in the coming weeks will likely be alloted shares at a discount, two officials in the finance ministry said.

ET

11)Disinvestment in steel giant SAIL seems to be the next in stake sale in PSUs, with the government considering a two-phase follow- on-public offer of the navratna firm, which will fetch the Centre over Rs 8,000 crore at current share prices.

FE

 12)Leading retail chain, The Loot India Pvt Ltd, plans to raise Rs 100 crore through an IPO, likely to be launched in the next calendar year, a top company official said.

BS

BONUS ISSUE

13)Just days after petrochemical giant Reliance Industries (RIL) declared a surprise bonus issue, state-run refiner Indian Oil Corporation(IOC) said it will give one free share for every scrip held by its shareholders. IOC will dole out the bonus shares after a gap of six years. The late time the company had declared a bonus issue was in 2003. The company has fixed October 30 as the record date for the purpose of ascertaining the eligibility of shareholders for issuing the bonus shares.

ET

MUTUAL FUNDS

 14)Companies have pulled out Rs 1.44 lakh crore from the mutual funds in September, signifying an investment pick-up in the economy. The withdrawals were mostly in income and money market schemes, where corporates typically park their surplus cash.

FE

COMMODITIES

 15)Commodity market regulator FMC has said that exchanges are free to fix the transaction fees, provided these do not breach the pre- scribed minimum of Re 1 and maximum of Rs 4 for a business of Rs 1,00,000.

FE

16)Gold held above $1,060 an ounce in Europe on Tuesday as persistent weakness in the dollar fuelled buying of the precious metals as an alternative asset. Platinum and palladium reached their highest in more than a year, buoyed by gold and supply concerns.

BL

17)Pepper market is seen easing with all producing countries except India showing willingness to sell at lower levels, traders said. while stocks of pepper in India are almost exhausted, other producers like Vietnam, Brazil and Indonesia have a adequate inventories and are willing to sell them at lower rates.

FE 

REAL ESTATE

 18)With the real estate market gaining momentum, top builders feel this Diwali has been far better and rewarding for them, compared to the previous one. Navin Raheja, managing director Raheja Developers, says, “We have achieved more than what we had envisaged this Diwali. We had launched a project called Raheja Shillas in Gurgaon, thinking that it will take around two months to sell approximately 70% to 80% of the project. But, with the realty market showing positive signs of revival, we sold the project in only 10 days.”

FE

BUSINESS PROCESS OUTSOURCING

19)ETISALAT DB Telecom, a new entrant in the Indian telecom space yet to launch services, has awarded an end-to-end outsourcing con- tract to three BPO service providers – Tech Mahindra, Aegis and Con- flux, the company announced on Tuesday. The deal, spanning over 5 years, is valued at over Rs 750 crore. Etisalat DB is a joint venture between UAE’s Etisalat group and India’s Dynamic Balwas Group with Etisalat holding 45% in the venture.

ET

INFORMATION TECHNOLOGY

 20)The worst is over for the IT industry, which is expected to in- crease spending by 3.3% in 2010, said research firm Gartner. World- wide IT spending is expected to decline 5.2% in 2009, but is fore- cast to grow by 3.3% to $3.3 trillion in 2010. However, returning to 2008 revenue levels will take longer, predicted the firm.

FE

21)IT Major Tech Mahindra on Tuesday met expectations with a 21% sequential rise in net profit in the September quarter and also announced that it had reached an in-principle agreement with its largest client British Telecom(BT) to protect its future revenues. The country’s fifth largest IT exporter’s net profit rose to Rs 169 crore in the September quarter from Rs 132 crore in the June quarter, while revenues rose 2.6% to Rs 1,141.8 crore.

ET

22)MAHINDRA Satyam, formerly Satyam Computers, has initiated talks with the NYSE for seeking more time to furnish its accounts after the bourse cautioned that it reserves the right to de-list the scandal-hit IT firm if circumstances so warrant.

ET

INTERNATIONAL

23)The price of oil hit $80 for the first time in a year on Tuesday, thanks to growing optimism surrounding global economic recovery, before pulling back on profit-taking traders said. New York’s main contract, light, sweet crude for delivery in November, reached $80.05 a barrel, the highest point since October 14,2008. It later stood at $79.20, down 32 cents compared with Monday’s close.

Hindu

24)Morgan Stanley agreed on Monday to sell its mutual fund business to Invesco Ltd for $1.5 billion, as the Wall Street bank restructures its money-losing asset management division. Under the deal for the retail asset management business, which includes mutual fund subsidiary Van Kampen Investments, Morgan Stanley will get $500 million in cash and a 9.4% stake in Invesco, an independent investment management company.

FE

25)Technology giant Apple has reported a whopping 47% jump net profit at $1.67 billion for the fourth quarter, its “most profitable quarter ever”, driven by record sales of smartphone iphone and Mac Computers.

FE

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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 (15 Sep 2009)

Date: 15 September 2009

Thought for the day

“Things don’t go wrong and break your heart so you can become bitter and give up. They happen to break you down and build you up so you can be all that you were intended to be.”

–Charlie Jones

GENERAL

1)GIVING a push to the government’s austerity drive, Congress president Sonia Gandhi flew to Mumbai in the economy class of an Air-India flight on Monday, making it clear to all her colleagues in the government and the party that they have to fol- low suit.

Indian Express

ECONOMY

2)A year after the collapse of Lehman Brothers, the government has expressed confidence in the speed of the Indian economy’s recovery, saying it would stabilise by the year end. “I think in the next six months, you will see evidence of the stabilisation,” Planning Com- mission deputy chairman Montek Singh Ahluwalia said on Monday. He said India would remain a preferred destination for foreign investors.

FE

CORPORATE / INDUSTRY

 3)GREEN shoots of recovery seem to be sprouting in the aviation industry. Showing signs of recovery, growth in domestic air traffic returned to post a double digit in August this year, according to official data released by aviation industry regulator Directorate General of Civil Aviation (DGCA) on Monday.

ET

4)Reliance Industries Ltd said the Bombay High Court has approved merger of group firm Reliance Petroleum Ltd with the company. The Bombay High Court has sanctioned the scheme of amalgamation of RPL with Reliance Industries, the Mukesh Ambani-led company said in a filing to the BSE. The High Court of Gujarat has also sanctioned the scheme, it added.

FE

MONEY / BANKING

 5)The rupee fell by around 20 paise against the dollar on Monday tracking the Asian equities. It opened weaker at 48.62 and touched an intra-day low of 48.80. It recovered to close at 48.67, against the previous close of 48.48.

BL

6)Sberbank, Russia’s oldest and largest state-run retail bank, will shortly open its branch in New Delhi as part of its strategy to expand in the emerging markets.

FE

7)United Bank of India is likely to come out with its initial public offering of shares by the first week of January, executive director TN Bhasin said on Monday in Kolkata.

FE

INSURANCE

8)SBI Life Insurance has launched SBI Life Shubh Nivesh, a traditional savings plan with an option of whole life cover. Shubh Nivesh has been designed to meet the savings, protection and income needs of customers having a risk-averse profile.

ET

MARKETS

9)THE market ended on a weak note in a volatile session as investors booked profit on Monday after last week’s rally that helped the Sensex regain the 16,000 mark. The mood was cautious as investors awaited advance tax figures that corporates are expected to announce in the next few days. Advance tax numbers and July-September earnings will work as triggers for the short term, said brokers. Snapping a six-day winning streak, the BSE 30-share Sensex lost 50 points, or 0.3%, to end at 16214 while NSE’s 50-share Nifty closed 30 points, or 0.4%, down at 4809. The weakness was in line with major global markets.

ET

IPO

10)The government on Monday fixed the IPO price for Oil India at Rs 1,050 a share. The IPO of 11% equity shares of OIL, ended September 10, would fetch the government Rs 4,982 crore.

FE

11)The Naveen Jindal-led Jindal Power Ltd(JPL), part of Jindal Steel and Power Ltd(JSPL), plans to raise Rs 4,000 crore from the primary market to partly fund its 2,400 Mw superthermal power project in Chhattisgarh, two sources said.

BS

12)Thinksoft Global Services, which is into the functional testing of software for BFSI sector, is entering the capital market with a public issue of 3,46,000 equity shares of Rs 10 each. The company will be announcing about its IPO in Mumbai on Tues- day.

FE

BONUS ISSUE

13)Indian Oil Corporation said its board has approved the bonus shares in the ratio of one for one. The board of directors have approved the issue of bonus shares in the ratio of 1:1(one new bonus equity share for every one equity share held), IOC said in a filing to the BSE.

FE

RIGHTS ISSUE

14)Hospital chain Fortis Healthcare’s Rs 1,000-crore rights issue is likely to hit the market by October, with the firm taking fresh steps to realise the plan.

BS

MUTUAL FUNDS

 15)JM Financial Asset Management Company, on Monday said that its Assets Under Management(AUM) has crossed the Rs 10,000-crore milestone on September 11, 2009. It has thereby clocked a growth rate of over 160% since March 2009, a release issued said. The AUM on March 2009 was Rs 3,758-crore of which Rs 1,480-crore was in equity, whereas the AUM as on September 11,2009, stood at Rs 10,041-crore of which over Rs 2,658-crore is in equity, the release said.

ET

16)Srei Infrastructure on Monday said it has got in-principle approval from the Securities & Exchange Board of India(Sebi) to launch its mutual fund business in the country. The company would be incorporating two wholly-owned subsidiaries for carrying out the asset management business.

FE

COMMODITIES

 17)Gold prices fell more than 1 per cent to below $1,000 an ounce in Europe on Monday, giving up the previous session’s gains, as the dollar strengthened in response to a decline in stock markets. Other precious metals tracked gold lower, with silver and platinum both retreating from the multi-month highs they hit on Friday. Spot gold hit $994.50 an ounce at 0912 GMT against $1,004.85 late in New York on Friday.

BL

18)Maize prices were marginally firm by 1% during the last week at Rs 9,350 per tonne on an average against the weekago period on expectations of lower output due to deficient rainfall during kharif sowing period, according to the US Grains Council.

FE

19)The cardamom output may fall 15-20 per cent this season due to delayed monsoon. The plantations in Kerala were devoid of showers during June, resulting in a drought condition that hampered the crop output, farmers from Idukki said.

BS

COMMUNICATIONS

 20)THE $23-billion deal between Bharti and MTN to create a trans-continental mobile behemoth has hit a hurdle as the South African government has sought dual listing for MTN that would allow MTN shares – not depository receipts – to be traded on Indian and South African bourses simultaneously with equal voting rights.

ET

21)SMS, or short message service, will shortly become cheaper for general and commercial users. After giving mobile operators several chances to bring down SMS charges below call tariffs, the Telecom Regulatory Authority of India(Trai) has now decide to intervene and decide on the SMS charges.

FE

22)STATE-owned telecom operator BSNL will award a $2-billion equipment contract to Indian Telephone Industries(ITI), following security agencies’ opposition to giving the deal to build 25 million wireless lines in the west zone to Huawei, the lone shortlisted bidder for this area, said a company official.

ET

INFORMATION TECHNOLOGY

23)Small and medium enterprises(SMEs) have just got a reason to celebrate. The Union Minister for Information Technology and Communications, A Raja, said last week that his ministry had recommended to the Union Cabinet and the Finance Ministry that the tax rebate currently applicable to Software Technology Parks of India (STPI) should be extended beyond 31 March 2010.

BS

INTERNATIONAL

24)OIL eased toward $69 a barrel on Monday, after a decision by a major US commodities exchange to enforce limits on large positions in- creased uncertainty and the dollar strengthened slightly. US crude for October delivery fell 11 cents to $69.18 a barrel by 1401 GMT, off a session low of $68.02. London Brent crude rose 8 cents to $67.77 a barrel.

ET

25)President Barack Obama speaking a year after Lehman Brothers Holdings Inc’s collapse, heads to Wall Street today to outline his plan for unwinding government involvement in the financial sector and to argue that new regime of rules to prevent a market crisis is needed more than ever.

BS

26)Europe’s economy probably returned to growth in the current quarter after governments spent billions of euros to pull the region out of the worst recession in more than six decades, the European Union said.

FE

27)JAPANESE high-tech makers NEC, Hitachi and Casio Computer said Monday that they had agreed to merge their mobile phone businesses in a bid to improve profitability. Together they would have the second biggest slice of the Japanese mobile telephone handset market, ahead of Panasonic but behind Sharp.

ET

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 (05 June 2009)

Date: 05 June 2009

GOOD MORNING

Thought for the day

“Winners are losers who got up and gave it one more try.”

–Dennis DeYoung

GENERAL

1)With the Left parties out of the Centre’s decision-making process, the new UPA government is poised to embark on all long-pending reforms in the financial sector along with PSU disinvestment, while initiating measures to combat the ongoing slowdown by enhancing public investment in infrastructure and focussing on the recession-hit export sectors.

Hindu

ECONOMY

2)EVEN though food items became dearer because of the base effect, the wholesale price index(WPI)-measured annual inflation for the week ended May 23 dropped to 0.48%. Fruits, vegetables, pulses and cereals became costlier over the week, while fuel index and index for manufactured items remained unchanged. But agri-analysts suggests that with a normal monsoon in offing, inflation food items is likely to remain soft.

ET

CORPORATE / INDUSTRY

3)Nissan Renault Automotive India Private Ltd, the first joint venture between the global alliance partners Renault and Nissan, announced that its investment plans for India are intact, allaying fears of the project being called off due to effects of global slowdown.

BL

MONEY & BANKING

4)The rupee on Thursday recovered but still ended lower for the third straight day against the dollar, this time by 13 paise at 47.20/21, despite the late rally in bourses and the weakness of the US currency in Asian markets.

BL

5)The government is planning to infuse Rs 16,000 crore in over a dozen public sector banks by subscribing to equity shares through right issues. The move is aimed at bolstering the banks’ capital base and help them meet the domestic financing requirements. United Bank of India, Dena Bank, Bank of Maharashtra and IDBI Bank are expected to be among the next set of banks whose capital infusion proposals will be taken up.

BS

6)ICICI Bank, once a price warrior in the retail loan market, may be getting back in the game. The country’s second largest bank has lowered interest rates on loans by 50 basis points, making it the
second rate cut in six weeks. The move will reduce rates on home and auto loans for new and existing borrowers of ICICI. Other big lenders are also pruning rates in the absence of a quick loan
offtake. On May 7, India’s largest home finance company HDFC lowered its prime lending rate – the benchmark rate to which all floating rate loans are linked – by 25 basis points. In a less publicised move, HDFC made an additional 50 basis point reduction in interest rates for new borrowers availing loans in the range of Rs 30 lakh to Rs 1 crore. This was done by revising the spread between PLR and the loan rate.

ET

INSURANCE

7)INDIVIDUALS who invest their savings in annuity plans offered by insurance firm could see a drop in their tax burden. Insurance Regulatory Authority of India(Irda) is in talks with the government
to make annuity-plans more tax-efficient. If the proposal is accepted in the coming budget, it will augment returns for retired employees and help insurers market these plans better. An annuity is a contract issued by an insurer to make regular payments to a policy-holder for the rest of his life after retirement. The frequency of payment depends on the way the policy is structured.

ET

MARKETS

8)The Sensex on Thursday closed above the 15,000-level for the first time in nine months as the new UPA Government indicated that divestment of public sector companies was on the cards. The 30-share index closed at 15,008.68, or 0.90 per cent higher than on Wednesday. The broader Nifty rose 0.93 per cent, closing at 4,572.65. The BSE Midcap index rose 2.26 per cent and the small cap index gained 2.2 per cent, both outperforming the Sensex. Though the Sensex opened with a negative gap of 116 points tracking the Asian markets, they picked up following the President’s comments on the economy, with the positive European markets providing further impetus.

BL

9)Kinetic Engineering hit a 5 per cent upper circuit to Rs 55.65 on bagging an order from an European automobile manufacturer. The order requires it to supply specialised transmission gear assemblies.

BS

10)Nitin Fire Protection rose 3.84 per cent to close at Rs 312.45 on announcement of its fund-raising plans. The board today approved plans to issue capital of up to $50 million through sources such as
QIP. The stock opened at Rs 304.9 and hit an intraday high of Rs 318 and a low of Rs 295. The scrip made a 52-week high of Rs 465 (June 4,2008) and a low of Rs 115 (March 9,2009). The scrip has delivered 55 per cent returns in the last one month.

BS

11)If the global markets do not throw in more surprise and if the Indian government does go ahead with reforms, the Sensex could be trading at the 19,000 levels by the end of the current calendar
year, said Mr Ridham Desai, Managing Director at Morgan Stanley Equity Research. Even if there is bad news globally, the market here will not touch the lows it did in October of last year, he
said. Corporate earnings will rise over the next two fiscal years as there would be an increase in domestic demand with more consumers spending and with improved sentiment.

BL

12)In an order which suggests that Ketan Parekh might still be playing an active role in the stock market, the Securities and Exchange Board of India on Thursday debarred 26 entities from transaction in securities until further orders.

BL

MUTUAL FUNDS

13)Mutual fund houses which have been waiting in the wings for conditions to improve have already started flocking the markets, lining up several new fund offers(NFOs) to be launched over the next few months. In fact, Shinsei AMC, the Indian arm of Shinsei Bank, Japan, has already filed an offer document for its ‘Industry Leader Fund’ with market regulator Securities and Exchange Board of India(Sebi) and will be launching schemes in the next two months.

FE

COMMODITIES

14)Spot bullion prices ended down on Thursday, tracking intra-day losses in global markets, traders said. However, depreciation in rupee against the dollar restricted further fall in domestic prices, they said. Pure gold closed at Rs 14,830 for 10 gm, down Rs 115 from Wednesday. Standard gold declined by similar margin to end at Rs 14,830 for 10 gm. Silver closed at Rs 23,265 a kg down Rs 535 rupees.

BL

15)Pepper futures slipped to trade marginally lower on the country’s leading agri exchange, National Commodity and Derivatives Exchange (NCDEX), as traders preferred booking profits. On the NCDEX,
pepper for the most-active June month contract was trading 0.52% down at Rs 12,425 per quintal, with an open interest for 4,282 lots. The pepper for delivery in the July-month contract also turned weak.

FE

REAL ESTATE

16)Realty major Parsvnath Developers today said it bagged an order worth Rs 19.86 crore from Delhi Metro Rail Corporation(DMRC) for construction of a residential project. “The company has bagged a contract from DMRC for construction of a residential project,” Parsvnath Developers said in a filing to the Bombay Stock Exchange.

BL

BUSINESS PROCESS OUTSOURCING

17)SOME of the big offshoring players are now relying on ‘speed dating’ – a quicker and cheaper channel for selecting the vendor for their back office and IT outsourcing needs – in an economic climate
that is forcing these firms to reduce their sourcing time and costs. Under traditional outsourcing procedures, a contract worth $30 million to $100 million and above, could take up to nine months to
finalise a vendor. This long process includes inviting bids from several vendors, spending time in understanding each vendor’s competency, and preparing a final shortlist of suppliers to chose from.
‘Speed dating’ cuts through the expenses and time invested in clinching outsourcing contracts allowing firms to select a vendor within 60 days. The experienced outsourcers are now beginning to avoid an exhaustive analysis of the entire vendor landscape and are instead preferring to keep the work with their existing suppliers.

ET

INFORMATION TECHNOLOGY

18)Even as they moved many hundred of jobs back to India over the last couple of quarters to cut costs on the back of a slowing global economy, Indian IT firms have realised the importance of creating
more local jobs in the geographies in which they operate. This is especially true in the US where they need to counter growing “protectionist” rhetoric from US senators and pressure from the Obama
administration. Thus, over the last six months alone, analysts estimate that for the first time, Indian IT-BPO firms would have created over 10,000 jobs in international locations, the majority
of them in the US.

BS

19)With the economic downturn continuing in western markets, India’s third-largest software exporter Wipro is seeing opportunities in the domestic market in a big way. ‘Given the kind of spend that is happening and that will happen even in India and China, there will be big
opportunity,”Wipro CFO Suresh Senapathy said.

BS

INTERNATIONAL

20)Oil rose above $67 a barrel on Thursday after a 3.5 per cent decline the previous day, boosted by forecasts of higher oil prices from US investment bank Goldman Sachs.US crude for July delivery rose $1.10 to $67.22 a barrel by 1135 GMT. London Brent crude gained $1.43 to $67.31. Further support for oil prices came from a weaker US dollar, which can boost the appeal of oil and other commodities as a hedge against inflation.

BS

FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.

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http://www.khojhyderabad.com
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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 (04 JUNE 2009)

GOOD MORNING
Date: 04 June 2009

Thought for the day

“The only thing that stands between a person and what they want in life are the will to try it and the faith to believe it’s possible.”

–Rich Devos

GENERAL

1)Wednesday marked a new page in the Indian Parliament’s history with the unanimous election of Meira Kumar as the first women Speaker of the Lok Sabha. Though her election was unchallenged and evoked promises of cooperation from across the floor, members made it clear that there would be no deferential treatment on account of her gender and Ms.Kumar found herself having to expunge remarks even before her maiden address to the House as Speaker.

Hindu

ECONOMY

2)With hopes of a stable government at the Centre, at least six economic forecasters have raised their economic growth estimate for the current fiscal citing lower-than-expected political risk after the recent general elections.

BS

3)FOR portfolio investors around the world, China may be the hottest market to be in. But Stephen Roach, chairman of Morgan Stanley Asia, would rather place his bets on India. “India has made improvements in the recent years in the standpoint of macro developments, specially higher savings, increased FDI and a modest improvement in the infrastructure share of the Indian GDP,” said Mr Roach, addressing the media at the Morgan Stanley 11th India summit.

ET

CORPORATE / INDUSTRY

4)Ultra Tech Cement, part of the Aditya Birla group, is all set to overtake ACC this month as the country’s largest cement company in terms of production capacity. This will probably be the first time in the last few decades that ACC will slip to the second position.

BS

5)State-run BHEL on Wednesday said it has bagged a Rs 375-crore order for executing two gas turbine generating units for a project in Oman. “BHEL has won an export order for two gas turbine generating units of 126 MW each from Oman,” a company statement said.

BL

MONEY & BANKING

6)The rupee touched a seven-month high, but fell in the last one hour of trade on dollar buying. The domestic currency opened higher at 46.91/92 and touched a high of 46.75 during day trade. It weakened to close at 47.06/08, against the previous close of 46.97.

BL

7)Having put in place high-tech banking solutions, Union Bank of India has stepped up its business target to nearly Rs 3 lakh crore in FY10, CMD M V Nair said. Embarking upon this high-tech business model in 2007, the bank proposes to give syndicated loans of Rs 25,000 crore this year.

FE

INSURANCE

8)Bharti AXA Life Insurance, is looking at doubling its new business premium by the end of the current fiscal. Talking to reporters on the sidelines of the launch of ‘Gurarantee builder’, a Ulip product, in Mumbai on Wednesday, Nitin Chopra, CEO, Bharti AXA Life Insurance, said “We have set a target for doubling our new business premium from the mark of Rs 293 crore as achieved by our company at the end of the fiscal 2008-09. Similarly, the total revenue of the company, which was at Rs 360 crore as on March 31,2009, was likely to grow two and half times to Rs 1,000 crore by the end of the fiscal.”

FE

9)ICICI Lombard General Insurance plans to launch in the next quarter a critical illness health insurance cover for high net worth individuals, according to a senior company official. “The insurance cover with a high sum assured of around Rs 25 lakh will cover most critical illnesses, generally excluded in insurance policies, such as heart attack, kidney failure, and cancer,” the executive said.

BL

PENSION

10)THE New Pension Scheme(NPS) for citizens is expected to get a big push with Budget2009-10 likely to extend tax benefits to contributions to the scheme. The finance ministry is considering a proposal to include pension contributions by private citizens to NPS in the Rs 1-lakh limit for tax-deductible investments under Section 80C of the Income Tax Act,1961.

FE

MARKETS

11)Benchmark indices struggled for direction yet again on Wednesday as investors continued to book profits on concerns that valuations have become expensive and a correction was in the offing. The Sensex briefly crossed the psychological 15,000-mark, but investors chose to play it safe as far as frontline shares were concerned. Institutions, both foreign and local, were not heavy buyers, prompting traders to unwind some of their long positions. The Sensex rose to 15,046.43 early in the session before slipping to 14,870.90 at close, down four points over the previous close. The 50-share NSE Nifty gained 5.45 points to close at 4,530.70. Secondline shares continued to be in demand, with both BSE and NSE Midcap indices gaining 1.5% each.

ET

12)HAVING burnt their fingers in small and mid-cap shares last year, retail investors have taken a more cautious approach this time: they are playing the mid-cap rally through the mutual fund route. Market watchers say this could further fuel the rally in secondline stocks, as fund managers will have to deploy the money collected through this schemes, even if it means having to chase prices. As per May figures, renewed inflows as well as an appreciation in portfolio value has boosted the asset base of mid and small-cap schemes by 18-30%.

ET

13)STOCKS of the top five state-owned banks – State Bank of India (SBI), Punjab National Bank(PNB), Bank of India(BoI), Bank of Baroda (BoB) and Union Bank of India(UBI) – seem to have caught the fancy of investors since the market began the rally on March 9, as consistently strong operational performance begins to rub off on their share prices.Stock prices have more than doubled in the past three months and crossed their highest levels in a year, outpacing the 76% rise in the benchmark Nifty of the National Stock Exchange (NSE).

ET

14)The rally in mid-cap stocks has taken the fizz out of the futures and options(F&O) segment of the equity market. The interest in F&O has come down because investors are pumping in most of their funds into mid- and small-cap stocks in order to cash in on the recent rally, say market players.

FE

15)Anil Ambani-controlled Big FM, the country’s single largest private FM radio company with a licence to operate 45 radio stations, will be listed at the Bombay Stock Exchange(BSE) and the National Stock Exchange(NSE) in one to two months. Big MF will become the second FM radio operator to list on BSE after Entertainment Networks India Ltd, which operates under the Radio Mirchi brand.

BS

IPO

16)Hydro power firm National Hydroelectric Power Corporation (NHPC) Ltd is likely to launch its much-awaited Rs 1,670 crore initial public offer by August to part finance its expansion
plans.

BS

MUTUAL FUNDS

17)Portfolio management services(PMS) of mutual funds are targeting high networth individuals(HNIs) with quant-based schemes. ING Mutual Fund is planning to launch “BSE 200 Quant”, PMS scheme for HNIs and ultra HNIs. The minimum investment will be 20 lakh. It had launched another quant fund in February.

BS

CORPORATE SCORE

18)OIL India(OIL), the nation’s second-biggest state-run energy explorer, on Wednesday reported a more-than-20% jump in net profit at Rs 2,161.68 crore in 2008-09 mainly due to increase in oil and gas production. OIL, which is planning an initial public offering (IPO) by September, reported the highest-ever net profit of Rs 2,161.68 crore in 2008-09 as compared to Rs 1,790.06 crore in the previous fiscal, a company statement said.

ET

COMMODITIES

19)Copper futures climbed 0.57% in early trade, extending a long rising trend, on the Multi Commodity Exchange(MCX) largely in tandem with firming trends in the global markets where signs of a revival in the economy raised hopes of a take-off in demand for the metal. At the MCX platform, copper for delivery in June-month contract rose 0.57% at Rs 239.75 per kg, in a turnover of 22,124 lots.

FE

20)Silver prices recovered on the bullion market on fresh industrial demand. Gold prices also rebounded moderately on mild buying enquiries. Silver ready(.999 fineness) hardened by Rs 180 a kg to Rs 23,800. Standard gold(99.5 purity) moved up by Rs 20 for 10 gm to Rs 14,875. Pure gold(99.9 purity) looked up by Rs 25 for 10 gm to Rs 14,945.

BL

REAL ESTATE

21)DLF, India’s biggest real estate firm by market capitalisation, is learnt to have put its commercial property in Andheri, a suburb in Western Mumbai on the block. This property was being developed with Akruti City and the asking price for the property is said to be at least Rs 500 crore.

ET

COMMUNICATIONS

22)THE government has put loss-making PSU Indian Telephone Industries (ITI) on the block. This may perhaps be the first instance where the government plans to split up a PSU into blocks and sell it as it is unlikely to find a buyer for the entire company. This comes after all efforts to merge ITI with state-owned operator BSNL have failed.

ET

BUSINESS PROCESS OUTSOURCING

23)BPO firms expect a revival in business soon as their clients see stability in their own businesses. Genpact president and CEO Pramod Bhasin said the BPO clients seem to have hit bottom and are now on the path to recovery. “We are seeing clients stabilise. The resumption of business will take a little while longer,” he said. The country’s largest BPO firm by revenues counts GE, Nissan, GlaxoSmithKline and Cadbury among its clients. The BPO industry has managed to withstand the economic slowdown well, pointed out WNS Global Services CEO Neeraj Bhargava, with most companies reporting a decent growth in profitability recently. “The question now is how soon can the topline growth be restored. The deal pipeline is beginning to build up and we are in early stages of pickup,” he said.

ET

INTERNATIONAL

24)THE number of US homebuyers who agreed to buy a previously occupied home took the largest monthly jump in nearly eight years in April, but there are still plenty of danger signs for the US housing market. Home sales appear likely to head upward this summer, potentially to levels not seen since the stock market collapsed last autumn, but prices are expected to keep falling well into next year. Layoffs, which are causing foreclosures to soar, coupled with rising mortgage rates could dampen any real estate recovery.

ET

25)AUSTRALIA became the only major western nation to avoid recession during the current global economic slump as it posted surprise growth in the first quarter of 2009. The data came a day after better-than-expected export figures and led prime minister Kevin Rudd to hail Australia as the strongest advanced economy in the world.

ET

26)Crude oil futures extended declines after a US goverment report showed an unexpected increase in inventories. Supplies rose 2.87 million barrels to 366 million in the week ended May 29, the Energy Department said in a weekly report on Wednesday. Inventories were forecast to decline by 1.5 million barrels. Crude oil for July delivery fell $1.42, or 2.1 per cent, to $67.13 a barrel at 10:35 am on the New York Mercantile Exchange.

BL

HEADLINES (03 JUNE 2009)

GOOD MORNING Date: 03 June 2009

Thought for the day

“The results you achieve will be in direct proportion to the effort you apply.”

–Denis Waitley

GENERAL

1)Nominations in favour of Meira Kumar as Speaker of the Lok Sabha were filed on Tuesday with Secretary-General of the Lok Sabha P.D.T Achary by almost all sections of the House except the major constituents of the “Third Front’ – the Left parties, the Telugu Desam Party and the All-India Anna Dravida Munnetra Kazhagam – paving the way for a smooth and unanimous election on Wednesday.

Hindu

ECONOMY

2)APRIL is no longer the cruellest month – in the first month of the current fiscal year, six core industries together clocked the fastest growth rate in ten months, emboldening the prime minister’s economic advisor to hint at the possibility of an upward revision of economic growth forecast for the year. Power, crude oil, refinery products, coal, cement and finished steel grew by 4.3% year-on-year, recovering from the low of 1.1% in December 2008, according to a release by the ministry of commerce and industry on Tuesday.

ET

3)The government may rope in merchant banker NM Rothschild to put in place a detailed roadmap for selling stakes in state-run companies, according to a finance ministry official. “We are also working on an advisory panel on disinvestment, which could include Accenture, McKinsey and Ernst & Young among others,” the official said on conditions of anonymity.

ET

4)IN a move that would significantly benefit Indian companies seeking to aggressively expand overseas and bulk up inorganically, the government is learnt to be studying the possibility of allowing cross border mergers. “Under Indian law, a merger is only allowed if both merging companies are registered in India,” Diljeet Titus, managing director at corporate law firm Titus & Company, told FE.

FE

CORPORATE / INDUSTRY

5)THE FMCG sector has grown dramatically in April-May 2009 to log a 20% surge, compared with 17-18% in the same period last year. Across categories, companies are ploughing back savings from lower commodity prices to invest in brand building, consumer discounts and promotions, coupled with improved distribution strategies. Rough industry projections peg growth at 30% in 2009-10. FMCG companies are also investing in distribution, and tailoring their products and prices to specific geographies to increase the return on investment(RoI).

ET

6)Consumer durables company Videocon is undertaking an image makeover exercise, as it looks to position itself as a premium brand with focus on eco-friendly and youth oriented products.

BS

MONEY & BANKING

7)The rupee declined for the first time in five days on concern an advance in crude oil prices will increase import costs. The rupee declined 0.2 per cent to 47.025 a dollar at the close, according to data compiled by Bloomberg. It touched 46.89 yesterday, the strongest intraday level since December 18.

BS

8)Local cheques should be cleared on the same day or at the most the next day of their presentation. For outstation cheques, the time frame for clearing should not exceed seven days for State capitals, 10 days for major cities and 14 days for other locations, said the Reserve Bank of India in a notification issued today.

BL

9)INDIA has seen a huge spurt in overall ATM transactions since April 1, when the usage of teller machine was made free for all customers irrespective of the bank they banked with – thanks to customers opting for multiple and smaller transactions. This trend is making many banks reconsider their earlier aggressive branch expansion targets.

ET

10)KARUR-based Lakshmi Vilas bank is set to raise Rs 2,500 crore over the next five years through a combination of a rights issue, issue of subordinated debt, follow-on public offer, global depository receipt(GDR) and a perpetual bond issue. The capital is needed to augment the bank’s business from around Rs 12,000 crore to Rs 70,000 crore over the next five years.

ET

INSURANCE

11)Country’s largest private sector life insurer, ICICI Prudential Life, has launched SecureSave, which is a unit-linked product that aims to grow the value of the investor’s savings, overtime, with an assurance of a minimum guaranteed maturity amount. SecureSave will provide a guaranteed maturity benefit up to 150% of the sum of all the investment premiums paid.

FE

12)HDFC Standard Life has launched the Unit Linked Wealth Multiplier, targeting high networth individuals, with limited premium paying term of 3 years for a fixed tenure of 10 years. The product comes with five fund options including Money Plus, Bond Opportunities, Large and Mid Cap.

FE

MARKETS

13)Indian equity indices closed the day on a flat note after witnessing huge volatility throughout the trading session. The 30-share Sensex of the Bombay Stock Exchange(BSE) added 34.28 points or 0.23% to close the day at 14,874.91 points. The broader S&P CNX Nifty of the National Stock Exchange lost 4.65 points or 0.10% to end the day at 4,525.25 points. Dealers in the market said apart from strong cues from the global markets, huge profit booking was witnessed in the markets.

FE

14)Shares of KGN Industries, a non-banking finance company,hit the 5 per cent upper circuit, closing the day at Rs 395.25. The company’s board will meet on June 6, 2009, to consider a stock split (current face value is Rs 10) in the ratio of 1:10.

BS

15)The Bajaj Hindusthan scrip rose 6.6 per cent to Rs 159.65 on announcement that the company has repurchased foreign currency convertible bonds(FCCBs) worth $17.93 million for cash at a discount. A total of $119.5 million was outstanding prior to this.

BS

16)With the equity market gaining momentum and the country’s economic outlook looking stable, brokerages have started upgrading companies here. Most of the upgrades have been of companies in the capital goods, oil and gas, infrastructure and real estate sectors.

BL

17)The Securities and Exchange Board of India(Sebi) is discussing a proposal to make it mandatory for brokers to collect margins from clients in the cash market. This is now practised only in the derivative segment.

BS

IPO

18)Oil India Ltd(OIL), the nation’s second-largest state-run explorer, is likely to launch an initial public offering(IPO) by September this year, company Chairman N M Borah said today. The company has initiated discussions with its IPO advisers to decide on the timing

BS

MUTUAL FUNDS

19)The asset base of the mutual fund industry rose sharply in May and crossed the Rs 6 lakh crore-mark as equities surged and liquidity improved. The assets under management (AUM) grew over 15 per cent to Rs 6,37,609 crore from Rs 5,51,254 crore in April, according to data released by Association of Mutual Funds in India(AMFI). This is the steepest monthly rise recorded since the market fall in January 2008.

BL

20)After missing out on the initial leg of this three-month rally in stocks, equity mutual funds have managed to catch up in May. They generated an average return of 31 per cent in May against the Sensex gain of 28 per cent. The post-election spurt ensured a 71 percent gain in equity fund NAVs(averaged) from their March lows.

BL

21)After stocks and land, gold has caught the attention of mutual funds, which are bracing up to tap India’s craze for the yellow metal by launching gold funds. Several top mutual fund companies are planning new gold funds and fund of funds that would invest in gold, gold ETFs(exchange traded funds) and even in gold mining companies.

DC

22)Japan’s Nomura Group is set to acquire 35 per cent in LIC Mutual Fund, India’s seventh largest mutual fund, after the board of directors of Life Insurance Corporation(LIC) approved a proposal to induct the Japanese financial services major as a strategic partner in the mutual fund business, sources in the state-owned life insurer said.

BS

COMMODITIES

23)Gold edged higher in Europe on Tuesday, recovering from earlier losses, as dealers remained wary about the outlook for the dollar which hit its lowest level this year in the last session. New dollar weakness could spark buying of bullion as a hedge against currency weakness, analysts said. Spot gold was bid at $975.40 an ounce, against $973.95 an ounce late in New York on Monday.

BS

REAL ESTATE

24)Signing of new commercial deals in metros is seeing signs of revival in the first quarter of the financial year 2009-10. Taking advantage of the soft-scenario on real estate deals and incoming supply, corporates are finding it of an advantage to do deals in this area.

FE

INTERNATIONAL

25)GENERAL Motors Corp won court approval on its first day in bankruptcy to sell assets as soon as next month after collapsing under $172.8 billion in debt and failing to adapt to consumer demands for smaller cars.

FE

26)Morgan Stanley, the sixth-largest US bank by assets, plans to raise $2.2 billion by selling common stock to help repay a government cash infusion. The capital will satisfy regulators’ requirement that banks tap the equity markets before they can repay bailout money received under the Troubled Asset Relief Programme, New York-based Morgan Stanley said on Tuesday in a statement.

FE

27)Crude oil fell for the first time in seven days after the Organisation of Petroleum Exporting Countries and Russia raised production in May. OPEC oil output climbed 1.5 per cent to an average 28.15 million barrels a day last month, according to a Bloomberg survey. Russia’s oil production in May advanced for the third straight month, a government report showed. Crude oil for July delivery fell 28 cents, or 0.4 per cent, to $68.30 a barrel at 10:53 am on the New York Mercantile Exchange.

BL

Headlines (02 June 2009)

GOOD MORNING Date: 02 June 2009

Thought for the day

“A small body of determined spirits fired by an unquenchable faith in their mission can alter the course of history.”

–Mohandas Gandhi

GENERAL

1)Humility and quiet resignation marked the first day of the 15th Lok Sabha on Monday as the House met for the first time after a long and acrimonious electoral battle that saw many parties and leaders biting the dust and from which many new faces emerged.

Hindu

CORPORATE / INDUSTRY

2)THE automobile industry, though slowly, is showing signs of revival. While Maruti Suzuki India, the country’s largest passenger car manufacturer with a market share of over 50%, registered a growth of
10.4% in May at 70,785 units compared to 64,143 units in the corresponding month last year, its close competitor, Hyundai Motors, posted a decline of 4.1% in domestic sales last month at 23,503 units vis-a-vis 24,510 units in May 2008.

FE

3)AHMADABAD-based Zydus Cadila and Israeli generic major Teva have settled their patent disputes over active pharmaceutical ingredients (APIs) used to make generic versions of GlaxoSmithKline’s heart drug and Johnson & Johnson’s anti-psychotic drug. Zydus will now be able to sell its generic versions of these products in the US without legal implications from Teva.

ET

4)SUN Pharmaceuticals, India’s biggest drug company by market capitalisation, will spend Rs 332 crore in research & development of low-cost version of original drugs to be sold in domestic and global markets, a top company executive said.

ET

5)Voltas electro-mechanical business has secured two orders worth Rs 300 crore for electromechanical projects for the most prestigious and noteworthy ‘new generation’ airports in India, namely Kolkata’s Netaji Subhas Chandra Bose International(NSCBI) airport and Chennai International Airport.

FE

6)US Drug maker Mylan will pay Rs 817 crore to buy-back 24.8% equity in Matrix Labs. The price, arrived through a reverse book-building process, is Rs 236 crore (41%) higher than the indicative price. The US-based company came out with a public offer in the first week of May to buy back the remaining 24.8% equity in Matrix at an indicative price of Rs 150 per share.

ET

MONEY & BANKING

7)The rupee touched a six-month high buoyed by strong gains in the domestic equities market and a weak dollar. “Although there was a two-way movement, the strengthening bias for the rupee continues,” said a forex dealer with a private sector bank. On Monday, the rupee opened at 47 and closed at 46.97 against Friday’s close of 47.08.

BL

8)LEADING banks have told corporates that there can be no dramatic reduction in lending rates. While the government is nudging banks to cut interest rates, the lenders have told apex industry bodies
that rates cannot be lowered to the extent corporates are demanding. At a meeting last week, the Indian Banks’Association(IBA), an association of bank managements, spelt out its views to the CII
and the FICCI. “We have told corporates that lending rates can be cut by 50 to 100 basis points (bps) from the current level in the near to medium term,” said a bank CEO who attended the meeting.
Corporates have asked for a 400-500 basis points cut in lending rates.

ET

9)Overseas analysts are now bullish on the Indian economy. An analysis by Bank of America and Merrill Lynch has upgraded our FY10 capital inflow projections by $14 billion, on a mix of receding international risk aversion as well as domestic political risks.

FE

MARKETS

10)The positive momentum on the domestic equity bourses on expectations of speedy implementations of economic reforms by the new government continued to push share prices higher. The 30-share Sensex of the Bombay Stock Exchanges(BSE) extended its upward rally by another 215.38 points or 1.47% on Monday to end the trading session at 14,840.60 points, just 160 points short of the 15-k level. Similarly, the broader 50-share Nifty of the National Stock Exchange(NSE) extended its gain by 1.82% or 80.95 points to close the day at 4,529.90 points.

FE

11)WITH FIIs getting back the voracious appetite for Indian stocks, they have put in over Rs 3,500 crore through just 62 bulk deals on the BSE in the first two months of the current financial year. According to an analysis of bulk deals on the exchange in April and May this year, FIIs transacted as many as 62 bulk deals buying shares worth Rs 3,516.61 crore, with the biggest deal being the sale of over 5% stake in DLF for Rs 2,106 crore.

ET

12)Stocks of oil exploration and production companies showed good performance recently, primarily due to a steady rise in crude oil prices. Nymex crude moved up over 10 per cent in the last
one week.

BL

13)Shares of Great Offshore rose 2.68 per cent to Rs 373.70 after Bharati Shipyard announced an open offer for another 20 per cent stake on Monday. Bharati, which holds 14.89 per cent stake in the
company, is yet to announce the open offer price. Analysts expect the offer price should be around Rs 326 a share.

BL

IPO

14)CIVIL aviation minister Praful Patel has said that government will consider listing of national carrier Air India on the bourses after capital market improves. “But the airline will not lose is public
sector character and it will not be privatised,” he told media persons after assuming charge for the second consecutive term.

ET

MUTUAL FUNDS

15)Assets under management(AUM) of several fund houses gained a significant amount in May compared to April, representative of smart inflows from retail investors in the Mutual Fund(MF) industry.
AUM refers to the market value of assets that an investment company manages on behalf of investors. Reliance MF for instance, the country’s biggest fund house, crossed the Rs 1 lakh crore mark in May. Fund managers attribute these gains to a surge in the Indian equity market in the last one-month. Data released of 27 fund houses by the Association of Mutual Fund in India(Amfi) showed AUM of Rs 4,40,589.64 crore for May, gaining 16.84% or 63,502.22 compared to Rs 3,77,087.41 crore in April. AUM of Reliance MF stood at Rs 1,02,730.15 crore, up by 14,342.16 crore or 16.23% compared to Rs 88,387.98 crore in April.

FE

COMMODITIES

16)WITH monsoon activity reviving after a brief pause, fears of another spike in food price inflation is dispelled for the time being. Monsoons have advanced over the southern states of Karnataka and Andhra Pradesh, after a week’s lull, India Meteorological Department, said on Monday. Agri commodity analysts pointed out that any further delay in revival in rain would have lead to a spike in prices of kharif crops. “Further delay hereafter (in advancement of monsoon) would have affected land preparation and sowing activities. In such event the prices of Kharif crops would have moved higher,” said Harish Galipelli, chief analyst at Karvy Comtrade.

ET

17)Many commodity stocks have surged 25-60 per cent during the first five months of this calendar year. The major reason is China’s strategic buying and the re-entry of hedge funds and institutional
investors in commodities in a big way. This has led, among other things, to crude oil at a year’s high of $68 a barrel and gold is also close to the year’s high of $1,000 per ounce. Copper and lead are up over 60 per cent in the calendar year.

BS

18)Copper rose more than 3 per cent on Monday to top $5,000 a tonne for the first time since mid-October, as Chinese data and a weak dollar drove industrial metals to new multi-month highs.

BL

19)Chana futures prices on the national commodity bourses may remain weak over the next few days on higher stocks with exchange warehouses supported by continued imported inflows of pulses. Overall demand from local buyers is limited.

FE

REAL ESTATE

20)Realty firm Parsvnath Developers will invest Rs 700 crore to develop a premium luxury housing project at Civil Lines in the national capital and expects a realisation of about Rs 1,300 crore in three financial years.

BS

COMMUNICATIONS

21)LEADING GSM operators Bharti Airtel and Vodafone Essar have added 2.8 million and 2.7 million subscribers, respectively, in April, continuing with their growth momentum. The second-largest mobile
operator, Reliance Communications, added just over 2 million subscribers last month, according to data released by telecom regulator Trai on Monday.

ET

INFORMATION TECHNOLOGY

22)Summit Technology Solutions, a Summit Holding company, Egypt, has announced its partnership with Polaris Software Lab Ltd. Through this partnership, Polaris has made its first major product go live in the Egypt market.

BL

INTERNATIONAL

23)Asian automakers have largely protected themselves from any disruption from the bankruptcy filing by General Motors and should gain further market share down the road, analysts and automakers said on Monday. General Motors, the world’s largest carmaker until its 77-year reign ended last year, filed for bankruptcy protection in the US with a plan to create a 21st-century company that can compete in world markets. GM reported $82.29 billion on assets and $172.81 billion in debt. The US government will bankroll the transformation of the 100-year-old automaker, a victim of tumbling sales and higher gas prices. The US plans to convert much of its $50 billion of loans to a 60% stake in new entity, administration officials said.

ET

24)CHINA’S manufacturing sector continued to expand moderately in May as new export orders improved, two surveys showed on Monday, adding to tentative signs that the world’s third-largest economy is stabilising.

ET

25)Crude oil rose to the highest since November as China’s manufacturing expanded for a third month, signalling that fuel demand in the world’s second-biggest energy consumer may increase. Crude oil
for July delivery rose $1.25, or 1.9 per cent, to $67.56 a barrel at 9:58 am on the New York Mercantile Exchange.

BL

Todays Headline (01-06-2009)

GOOD MORNING Date: 01 June 2009

Thought for the day

“The winners in life think constantly in terms of I can, I will, and I am. Losers, on the other hand, concentrate their waking thoughts on what they should have or would have done, or what they can’t do.”

–Denis Waitley

GENERAL

1)THE new Lok Sabha, with a more dominant Congress heading a coalition having a comfortable majority with its allies, opens its first session on Monday whose highlight would be the election of the Speaker and unfolding of the UPA Government’s plan of action.

Indian Express

ECONOMY

2)WHILE finance minister Pranab Mukherjee has asserted that the next wave of economic reforms will provide a sustained stimulus to growth, the finance ministry has listed out seven important pending reform bills – on insurance, pension and banking reforms – for ‘priority’ passage by Parliament.

FE

3)THE new UPA government at the Centre plans to raise Rs 10,000 crore through stake sales in state-owned units over the next one year, more than what the previous UPA government achieved during its entire five-year tenure. With the Left off its back, the Manmohan Singh-led government is planning to unveil its disinvestment agenda in the budget, complete with annual targets, a finance ministry official said.

ET

CORPORATE / INDUSTRY

4)ANIL Ambani-promoted Reliance Power is in talks with Australian mining firms BHP Billiton and Rio Tinto for setting up a coal mining joint venture that will develop the mines allocated to the company and supply coal to its power plants. The company plans to spend close to Rs 5,000 crore in developing coal mines, said a person familiar with the development.

ET

5)THE board of Bharat Shipyard has decided to make an open offer for Great Offshore even as Vijay Sheth, the vice-chairman and managing director of the company resigned from the company on May 29. Bharti Shipyard currently holds 14.9% stake in Great Offshore while Mr Sheth, the erstwhile promoter, holds less than a 1% stake in Great Offshore.

ET

6)THE promoters of Ispat Industries, Pramod and Vinod Mittal, have pledged their entire shareholding in the company with lenders as the beleaguered steel company makes yet another attempt to rid itself of a mountain of debt and emerge healthy.

ET

7)Kowshik Kuchroo is sure that the bad days for the shipping industry are over, finally. The vice-president of Mercator Line, India’s largest dry bulk carrier, said operations have become profitable once again and the company is, in fact, looking to buy new ships.

BS

MONEY & BANKING

8)The country’s largest lender, State Bank of India, is hopeful of earning more profit than the landmark figure of Rs 10,000 crore in the current fiscal. “Looking at the past performance and(the) way the bank has been expanding its businesses, we expect the net profit to cross Rs 10,000-crore mark in FY’10,” a senior SBI official said.

ET

MARKETS

9)PRO-BUSINESS comments by the government to boost the economy and trends in overseas equities will be key to a positive market sentiment this week. Though the wider consensus among market participants is that stocks appear overbought, the existing positive undertone may extend the flow of money into Indian equities from both foreign and domestic funds.

ET

10)PSU stocks are on a roll. Market expectations that the UPA government, without the baggage of its Left allies, would push forward with the divestment of public sector undertaking(PSU) companies, is driving these stocks. As a result, since May 16 there has been investor euphoria for the stocks of government-run companies. The PSU index on BSE has gained 40%, double the sensex gain of 20% during the same period.

TOI

11)SIGNS of renewed confidence in stock markets among investors is encouraging retail broking firms to revive their nearly-dormant margin funding business. While many brokers have slashed interest rates on margin borrowing by at least 2.5% to encourage borrowing by clients to trade, a few of them have approached the stock exchanges, seeking permission to extend the scope for such lending to small and mid cap stocks.

ET

12)Before derivatives trading began, NSE and BSE were all-electronic equity spot markets. By international standards, they were small markets. Derivatives trading, which started in June 2000, was a turning point in many ways. And after all the changes had fallen into place, NSE and BSE were both amongst the top 10 exchanges in the world by the number of transactions.

FE

IPO / FPO

13)After a lull of nearly three months and following the installation of a stable government at the Centre, the capital market is set to witness action again, with Rishabhdev Technocable coming out with its Rs 22-crore follow-on public offer (FPO) scheduled to hit the market on June 4.

ET

MUTUAL FUNDS

14)Some large domestic mutual funds are asking market regulator Sebi to revise a rule that prevents them from investing more than a tenth of an equity scheme’s assets in a single stock or equity-related instrument. The main trigger for the request is that the rule is constraining or will constrain these schemes from increasing their investments in shares of Reliance Industries, usually at the vanguard of a bull rally in stock prices.

ET

15)Shinsei Asset Management (India), plans to launch its first two mutual fund products in the country before end-July and targets to have six-eight products in the market in the next 18-months, a top company official said.

ET

COMMODITIES

16)Crude oil futures on the national bourses gained further momentum on the week ended Friday and prices rose nearly over 8% during the week on continued buying support from market participants mainly on reports of OPEC’s decision to hold output and falling US crude reserves supported by dollar weakness. The rally in gold futures on the MCX continued even this week because of higher crude oil price supported by weak dollar value.

FE

REAL ESTATE

17)Enthused by a strong institutional response to QIP(qualified institutional placement) issues, builders are now anticipating revival of private equity(PE) investments at project level, but real estate funds want to see more sales in the property market before finalising deals.

BL

BUSINESS PROCESS OUTSOURCING

18)INDIA’S $47 billion IT outsourcing industry, struggling to cut costs without compromising on seat capacity, is now reinventing the wheel. Some of them have stitched up deals with telecom companies, outsourcing their own communication infrastructure, a model now known as “hosting services”.

ET

INFORMATION TECHNOLOGY

19)After the pall of gloom owing to shrinking IT budget of the corporates for over three quarters, there is a ray of hope for the sector. According to global market research firm IDC, worldwide IT spending is expected to turn positive in 2010.

FE

20)The impending bankruptcy declaration by General Motors may not have a major impact on Indian IT vendors, though analysts believe that there could be some short-term uncertainty on receivables and volumes.

BL

21)TATA Consultancy Services(TCS), the country’s largest IT services firm, is exploring new avenues in the life sciences and healthcare space, while demand from existing clients gains momentum. Out sourcing analysts say there are deals worth $300-400 million in the market at various stages of negotiations.

ET

22)Satyam Computer is planning to reduce real estate costs by terminating lease contracts for offices in India, which will help the embattled IT firm save up to Rs 100 crore by the end of this year.

BS

INTERNATIONAL

23)OPTIMISM over the US government’s stimulus programs to combat the recession lifted consumer confidence in May to its highest level in eight months, a survey released on Friday showed. The gradual healing in consumer confidence, which hit a 28-year low in November, has been seen as a sign of an economic rebound from the worst downturn since the Great Depression.

ET