Date: 27 October 2009
Thought for the day
“The great thing in the world is not so much where we stand as in what direction we are moving.”
–Oliver Wendell Holmes
1)After it played host to a SAARC (South Asian Association for Regional Cooperation) meeting 23 years ago, Bangalore has been chosen as the venue for the first meeting outside New Delhi of the Foreign Ministers of India, Russia and China. External Affairs Minister S.M. Krishna will meet Chinese Foreign Minister Yang Jiechi and Russia Foreign Minister Sergei Lavrov to delibrate on regional and international issues during the ninth trilateral meeting to be held at Hotel Leela Palace in Bangalore on Tuesday.
2)India and the US on Monday agreed to work in concert to evolve a framework for promoting real and meaningful cooperation in trade and investment which would address mutual irritants impeding the bilateral economic engagement.
CORPORATE / INDUSTRY
3)Larsen & Toubro Ltd on Monday said that it has sold its 50 per cent stake in Voith Paper Technology India Ltd to its joint venture partner Voith AG of Germany. Voith AG held the balance 50 per cent stake. The sale is effective October 1.
4)Motherson Sumi Systems Ltd(MSSL) announced on Monday that its European subsidiary Samvardhana Motherson Refletec(SMR) has received a Rs 1401.8 crore order for supply of rear-view mirrors to two auto companies. This is apart from SMR’s earlier orders worth Rs 3,503 crore from Volkswagen and BMW that the company had announced in August.
MONEY & BANKING
5)A weak equities market and month-end dollar demand on Monday dragged the rupee down by 14 paise to 46.64/65 against the US dollar. Forex dealers said the rupee fell sharply in tune with sluggish trend in stocks.
6)The government is considering far-reaching reforms in the banking sector, including giving banks the freedom to open branches in Tier-3 and Tier-4 cities, and granting 15 new licences to smaller banks for the first time in almost 11 years.
7)BUOYED by a 163% year-on-year rise in non-interest income(courtesy, treasury operations), Canara Bank reported a net profit of Rs 911 crore for the second quarter (Q2) ended September 30,2009, against Rs 529.43 crore in the comparable period of the previous financial year.
8)A surge in income on investments and interest on income tax refund helped IDBI Bank post a robust 56 per cent increase in second quarter net profit at Rs 254 crore as against Rs 162 crore in the corresponding period last year.
9)Institutional selling in blue chips, mainly banks and real estate stocks, dragged shares lower in a choppy session on Monday even as most regional markets ended higher. The Sensex fell 70.31 points, or 0.4 per cent, to finish at 16,740.50, after trading between 16,706.08 and 16,938.88. “This is just the unwinding of long positions before of the current month’s derivatives expiry on Thursday,” said Mr Sunil Pachisia, Vice-President of Pratibhuti Viniyog. Mr Pachisia expects the market to gain strength on short-covering later in the week. On the NSE, the 50-stock S&P CNX Nifty fell 26.15 points, or 0.5 per cent, to close at 4,970.90.
10)Thinksoft Global Services, an IT solutions provider, closed with the highest premium among the new listings so far in the current financial year with its stocks closing at Rs 164.30 on the BSE on Monday, up 31.44 per cent against the issue price of Rs 125.
11)Extended trading hours on equity exchanges may lead to a rise in trading volume by 20-25 per cent, according to a National Stock Exchange(NSE) top official. “Based on the experience of other countries, I can say that the trading volume of the stock market may rise 20-25 per cent when these extended timings are implemented,” said Ravi Narain, managing director and chief executive officer, NSE, on the sidelines the launch of a point of presence in Rajkot.
BONUS & RIGHTS ISSUE
12)The board of directors of the Ahmedabad-based Adani Enterprises Ltd(AEL) are set to meet on October 30, 2009, in order to consider the issue of bonus shares as well as right shares subject to the approval of the shareholders. If approved by the board, this will be the third bonus from Adani Enterprises.
13)Tata Motors on Monday said its profit after tax for the quarter ended September 30 more than doubled to Rs 729.14 crore compared to Rs 346.99 crore in Q2 of FY2008-09 on the back of better operating margins, volume recovery and cost reduction efforts. The better-than-expected results are on a standalone basis, excluding the financials of Jaguar Land Rover(JLR), Tata Motors’ loss-making luxury car unit.
14)India’s biggest drug maker, Ranbaxy Laboratories, has posted a net profit of Rs 116.6 crore for its third quarter ended September, against a net loss of Rs 394.5 crore in the same period last year, which had been largely attributed to mark-to-market exchange losses.
15)Pharma major Lupin has clocked a 39 per cent jump in its net profit at Rs 160.3 crore for the second quarter ended September 30, as against Rs 115.6 crore in the year-ago period.
16)Gold prices rose back above $1,055 an ounce in Europe on Monday as the dollar’s slide to 14-month lows against the euro supported sentiment, but weaker physical demand and easing oil prices capped gains.
17)GOLD prices today fell by Rs 40 to Rs 16,190 per 10 gram in the bullion market in New Delhi as traders and retailers refrained from buying the metal at existing higher levels amid weak global cues. Meanwhile, silver lost Rs 50 at Rs 27,500 per kg. Marketmen said slump in demand at existing higher levels on ending of festival season mainly led to the fall in both gold and silver prices.
18)SPURRED by the increasing trade enquiries from the major metro- markets, domestic pepper has turned hot. Prices have registered a sharp increase in the last few days supported by domestic demand.
19)Bucking the national trend, realtors in south India appear to be in no mood to raise prices. A cross section of leading construction firms which FE contacted say after the lull, demand has just started picking up and they want to cash in by pushing up the volume. “We cannot afford to drive away customers when the demand is there, said T Chitty Babu, chairman and CEO, Akshaya Pvt Ltd, one of the key realty players in Chennai.
20)Tata Teleservices has beaten its larger rivals in subscriber additions for the second month in a row in September riding on the back of its breakaway tariff schemes, even as competitors dismissed the strategy as unsustainable. In the festive season, when sales for telecom companies is at its highest, Bharti Airtel, Vodafone Essar and Reliance Communications have recorded a drop in monthly additions, while Tata Teleservices managed to clock a positive growth.
21)INFOSYS Technologies, which counts Bank of America, Royal Bank of Scotland and ABN Amro among its top customers, sees more opportunities emerge as these banks merge their business and technology systems in order to consolidate their operations and integrate better with the acquired entities.
22)HCL Infosystems, the domestic business subsidiary of the $5 billion IT group controlled by billionaire Shiv Nadar, has emerged as the lowest bidder for providing computer hardware and software solutions to Bharat Sanchar Nigam’s western operations, the company’s third such win this year.
23)THE Mahindra group, the new owner of Satyam Computers and the largest shareholder in Tech Mahindra, is set to merge the two companies after June next year to transform the combined entity into an Indian in- formation and communication technology power-house.
24)After rain and sunshine, Mahindra Satyam seems to be back on the roads of confidence. The company has joined hands with the global consultancy firm, Bain & Company, to bring back a dedicated project team for roping in new clients. The company lost over 100 customers, after its founder B Ramalinga Raju committed a Rs 7,000 crore fraud, and is now left with over 400 customers.
25)ING Group NV, one of the world’s largest financial services companies, announced plans Monday to sell or list its insurance and investment management arms and to issue euro 7.5 billion($11.3 billion) in new shares to repay state aid and bolster its finances.
FOR MORE INFORMATION, PLEASE BROWSE THROUGH THE FOLLOWING SITES.
Karvy Consultants Ltd www.karvy.com
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